When the Affordable Care Act was signed into law in March of 2010, its purpose was to ensure that all American citizens were given access to medical care. Within the scope of its many provisions was the establishment of private insurance exchanges. These exchanges were meant to be a place where a business could give its employees choices over the type of healthcare coverage that they wanted, without having to push just one plan on every single employee.
Here it is, several years later, and the question that you seek to answer is this: Has the private exchange market stalled or is it just getting started? The numbers speak for themselves. In the first month of 2016, approximately 8 million employees and their dependents enrolled in health care plans via private exchanges. In the first quarter of 2015, the numbers were at 6 million. That is a 35% increase from 2015 to 2016.
Growth is good, right? Yes, the numbers show that there is a continual pattern of growth in enrollment through private insurance exchanges. However, that is not enough information to safely say that this arena in health insurance is just getting started.
There is another element to consider in this equation. From 2014 to 2015, growth in enrollment was at 100%, from 3 million to 6 million enrollees. The prediction was that the numbers would continue to grow, and by 2016 would be at 12 million. That proposed number never became reality. Instead it stopped at 8 million. What does that mean? It means that though enrollment through private exchange markets is growing, the rate of growth has slowed.
Can the burning question be answered? Has the private exchange market stalled or is it just getting started? The logical answer is this: The number of individuals enrolled in health plans through the private exchange market has shown continual growth. For that reason alone, it is safe to say that the private exchange market has not stalled, but is just getting started.
The benefits of the private exchange markets reach both employers and employees. For employers, the choice of that one blanket plan to meet at least some of the needs of each and every employee, is a thing of the past. The burden of choice is now on the employee. In addition, the task of record keeping has now commonly switched from the employer to the insurance company, releasing the employer from an often time-consuming task.
What was once a burden to the employer, is now a benefit to the employee. That thing is choice. Having the choice to choose the level of coverage that fits his own individual need is empowering and less restrictive.
So the question that follows is how can you, as an insurance broker, ensure that you are establishing a relationship with a private exchange that will be beneficial to you and your clients?The best way is to research, research, research! While researching each potential exchange, here are a few key questions to ask yourself.
By asking yourself these questions and thoroughly reviewing each potential exchange, you will not only allow yourself to make a confident choice, but you will also set the stage for potentially increasing your commission while offering top of the line services to your clients.
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