The Rise of Private Benefit Exchanges

Smart employers are beginning to realize employee benefits are a valuable tool, both for recruiting and for retaining top talent. A strong benefits package that allows employees to customize their plan builds employee loyalty, while simultaneously encouraging lower absenteeism, higher work productivity and overall increased job satisfaction. Essentially, the power of choice is a greatly sought after option for those seeking benefits.

As employers work to meet their staff’s diverse personal and financial needs, the adoption of private exchanges –  a platform where employers allot their workers with a certain amount of money to purchase benefits from – is on the rise. Now more than ever, employees and their dependents are empowered to enroll in their own benefits plans through private exchanges as the average number of products made available by employers is growing. [1]

According to a report by the Private Exchange Research Council (PERC), among the top benefits most frequently offered on private exchanges include:

      • Medical insurance
      • Health savings account (HSA)
      • Vision insurance
      • Dental insurance
      • Employee life insurance
      • Spouse life insurance
      • Child life insurance
      • Legal plans
      • Identify theft protection
      • Long-term disability
      • Short-term disability
      • Telemedicine
      • Pet insurance
      • Health coaching
      • Accident insurance

*Source: Private Exchange Research Council

The report also listed the fastest-growing products offered by employers:

      • Transit flexible spending accounts
      • Parking flexible spending accounts
      • Hospital indemnity insurance
      • Critical illness insurance
      • Accident insurance

*Source: Private Exchange Research Council

As these popular benefits become added by employers, the rate of acceptance for private exchanges will continue to grow, shifting to a more consumer-centric health and employee benefit industry.

[1] Scorza, John. “How Private Exchanges Are Coming of Age.” SHRM. Society for Human Resource Management, 5 Dec. 2016. Web. 15 Dec. 2016. < http://bit.ly/2hAL364>.

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