Employee Benefit News for School, City and County Employers

Report: Healthcare exchanges provide affordable benefits

Written by Valerie Ortiz | Feb 3, 2014 9:27:01 AM

A new report from PricewaterhouseCoopers found health plans offered on the federal- and state-run health insurance exchanges offer good deals to consumers. 

According to news source Marketplace, PwC's report found the average premium on the marketplaces is lower than the average premium for employer-sponsored health plans. There were concerns when the exchanges opened on Oct. 1, 2013, that the plans wouldn't be affordable for consumers or that consumers would have limited choices, but the report found the new products were high quality and affordable. For school districts, these findings show the cost benefits of encouraging early retirees to enroll in exchange-offered plans.

More employers are starting to become aware of these benefits as well. NBC News reported employers are continually frustrated with the costs of providing health coverage to employees, so the exchange-offered plans provide quality and cost advantages to employers and workers. As the majority of American workers receive their health coverage through their employers, NBC News reported private and public employers could see significant cost savings in the future if they transition workers onto the exchanges.

"In 2014 health insurance plans offered on the [Affordable Care Act's] 51 new exchanges are on average, comparable to, or lower priced than, similar employer-based plans," the PwC report says, according to NBC news. "In addition, most exchange shoppers have a wider variety of plans than the typical employer-based offering."