Why Companies With Under 100 Employees Are Adopting Private Benefits Exchanges
Providing adequate employee health coverage while managing costs has historically been a challenge for small to mid-size businesses. It’s difficult to factor those costs into your company budget with so many variables to consider.
The health insurance landscape has changed considerably since the Affordable Care Act (ACA) passed in 2010. Companies have since increasingly turned to private exchanges to reduce the cost of health care and allow employees to shop for themselves. Offering enhanced selectivity in coverage for your employees and fixed costs for you, it’s easy to see why a private exchange is so popular.
Employee Benefits Tailored Towards Companies Under 100 Employees
According to an Accenture report, an estimated 6 million employees enrolled in private health care exchanges in 2015, double the number from the previous year. As the cost of health care has risen at more than double the national average for 64 percent of employers in Buffalo and Rochester, switching to private exchanges offers an appealing alternative for businesses for several reasons:
- Defined Contribution – In contrast with the old model, you pay a predetermined amount for each employee, making it easier to budget health care costs into company expenses
- Empowered Employees – A private benefits exchange like Lawley Marketplace allows your employees to shop online from a wide selection of available coverage options. A Lawley Employee Benefits survey found that 83 percent of employees in Western New York preferred making their own choices in health coverage
- Less Paperwork – Adopting a private exchange will free you from the responsibility of administering enrollment forms, reporting and billing. The exchange virtually handles all of that for you
- Added Value – Private benefits exchanges give your employees a sense of control and freedom of choice in the marketplace. Private exchanges let them tailor their coverage to suit their individual needs
- Employee Retention – Employee turnover is a big expense: recruitment, hiring and training are budgetary burdens. Affordable health care that employees can choose for themselves from an open marketplace can increase employee satisfaction and loyalty
Lawley Marketplace, Your One-Stop Online Health Care Solution
When you adopt a private benefits exchange, both you and your employees enjoy the convenience of online shopping and enrollment. Lawley Marketplace offers guidance for your employees during open enrollment periods to help them choose the right plan for them and their families. There’s no need to shop around for an affordable option or handle all the administrative tasks yourself. Lawley Marketplace gives you control of your health care budget for long-term stability in your business.
If your company has under 100 employees, talk with our employee benefits team to find out if Lawley Marketplace is right for you.
