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Cost Control Key to Assessing Health-Care Exchanges 

Kelly Reuba 

Grassroots℠ Research 


While benefits administrators take a wait-and-see approach with the Affordable Care Act, Kelly Reuba, Global Head of Grassroots℠ Research, says cost is their No. 1 concern.
To gauge utilization of health-care exchanges among US companies and evaluate insurance options for employees in light of US health-care reform, Grassroots℠ Research commissioned interviews with human resources or benefits managers at small, mid-size and large companies, plus a few health-care industry consultants. Nearly all sources said controlling costs is a top priority in the next three years, followed by ensuring quality of health care, maintaining competitive benefits packages (especially at large companies) and employee satisfaction.

One-fourth of those surveyed at large companies likely will consider adopting a private-exchange model for their largest active-employee population; the percentage drops significantly for smaller companies. Those considering a private-exchange cited cost control as a primary motive, but the general perception is that the private-exchange model is in the early-adopter phase. Sources said they will wait to see how private-exchange products and the health-insurance landscape evolve with the implementation of the Affordable Care Act in the US.

Cost Is the Top Priority in Benefits Administration

GrassrootsSM Research asked human resources
and benefits managers for their top priorities when
evaluating health-insurance options for their employees.
Source: GrassrootsSM Research reports as at November 2013

The material contains the current opinions of the author, which are subject to change without notice. Statements concerning financial market trends are based on current market conditions, which will fluctuate. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Forecasts and estimates have certain inherent limitations, and are not intended to be relied upon as advice or interpreted as a recommendation.



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