10 Reasons Why Shopping for Your Employee Benefits Online Makes Sense
The Affordable Care Act (ACA) dramatically changed the healthcare landscape, and as a result, every American was expected to purchase health coverage in 2014. A public health insurance exchange was created on the national level, and many states built their own public exchanges. For example, New York developed the New York State of Health marketplace, which offers individuals and small businesses an opportunity to shop for plans and apply for subsidized coverage.
Private benefits exchanges have also expanded due to the ACA. These are separate from public exchanges, meeting the needs of employers who wish to control the cost of insuring employees through a defined contribution plan. Private exchanges, such as Lawley Marketplace, give employers a selection of health insurance providers with customizable plans.
Both employers and employees gain advantages from shopping for your employee benefits online:
- More Choice Without Additional Cost: Private exchanges offer a comprehensive selection of benefits — often from multiple carriers — giving employers an opportunity to offer more options to employees while still controlling overall cost to the company
- Increased Employee Satisfaction and Engagement: Recent research shows that 83 percent of employees enrolled in an employer-sponsored plan are frustrated when their company attempts a one-size-fits-all approach. Employees that feel valued by their company are significantly more engaged with their jobs, and custom benefits are a great way to accentuate the value of each staff member
- Increasing Popularity: As more employers get on board with private exchanges, employees have educated themselves, and they are increasingly passionate about having choice in their healthcare plans
- Private Exchange Growth: Most business analysts predict continuing growth in private exchanges over the next few years as employees demand individualized health coverage. Smart companies are making changes now to ensure their reputations as best-in-class employers in the job market
- Easy Administration: Rather than taking on the task of comparing carriers and plans alone, employers can rely on their private exchange to do the legwork. Most offer a menu of benefits choices with easy-to-use plan comparison tools
- Defined Employer Contributions: Nearly a third of employers are considering or have moved towards a defined benefits approach, in which the employer contribution is fixed and employees have the option to buy additional coverage. This results in individually tailored plans for employees without added expense for employers
- Extensive Experience: Private health exchanges rolled out in 2004 with coverage for Medicare-eligible retirees. The past decade-plus of experience has allowed private health exchanges to make life easier for employers, who can be confident that their provider has the expertise to advise on benefits decisions
- Employee Retention: Today’s job market is becoming more candidate-oriented, and benefits packages are often just as important as salary offers to prospective hires. An employee-centric private benefits exchange means current employees have less temptation to look outside the company for a new position
Employers have tough choices to make when it comes to offering employee benefits. While dramatic increases in expenses are not sustainable, caring for employees’ health needs is non-negotiable. Private exchanges offer a solution that mitigates expenses and increases employee satisfaction with company-sponsored benefits. To see if a private exchange, like Lawley Marketplace, is right for your company, talk with our Employee Benefits team to assess your individual needs.
