Users of Private Exchange Recognize Greater Value Over Time, Liazon Survey Shows
Understanding of Benefits and Engagement With Health Care Decisions Increases With Every Year on an Exchange
BUFFALO, NY (October 8, 2014) – A new survey by Liazon, operator of the industry-leading private benefits exchange for businesses across the U.S., demonstrates that advantages from using a private exchange increase significantly over time for both employers and employees. These data reveal promising long-term results and provide a prime example of the welcoming effects of the private exchange experience.
With every year using the exchange, employees choosing their benefits through Liazon have reported significantly increased engagement in their health care decisions and a better understanding of their medical and ancillary benefits. In addition, they are more likely to appreciate their company’s contribution to their benefits with each year on the exchange.
Employers recognized increasing advantages over time as well. 73% of first year employers, and 93% of employers in their second and third years using an exchange, report that Liazon helped them to control benefits costs.
“We’re starting to really understand what the multi-year exchange experience looks like, with more empowered and informed employees, and employers who are seeing the effects a private exchange can have on the bottom line,” said Ashok Subramanian, Liazon’s co-founder and chief executive officer. “We in the industry have been predicting that private exchanges will fundamentally alter how we think about benefits; now we’re beginning to see this shift occur.”
The survey, which was conducted online among employees and employers who use Liazon’s flagship product, the Bright Choices® Exchange, as well as other private exchanges powered by Liazon, also demonstrated a number of remarkable results for employers and employees using a Liazon exchange for any length of time.
Employees enjoy being in the driver’s seat when it comes to choosing their benefits. An overwhelming 88% of consumers reported that they preferred choosing their own benefits over having their employers select for them, and 90% were satisfied with the number of choices available on the exchange, or wanted even more. Additionally, consumers who are choosing benefits on the exchange are doing so for the right reasons: 52% cited the desire for the best portfolio of products for their needs as the primary motivator, while only 18% stated they chose their benefits because they were the lowest cost. Employees also expressed satisfaction for the shopping and enrollment experience overall (79%), as well as the variety of benefits available on the exchange (78%).
“Employees are very diverse and appreciate making selections based on their own preferences and needs,” said Margaret Marino, executive director of The North Museum of Natural History & Science. “The Bright Choices interface is easy to use and gets better as folks get used to it. It is very useful to us as an employer to be able to control our contribution each year and that employees look at the choices as an added benefit.”
Note to Editors
Liazon conducted this survey online during June and July 2014 with employers and employees that use Liazon-powered exchanges. Overall 118 employers and 188 employees completed the survey. To view the survey results report, click here.
Founded in 2007, Liazon Corporation operates the industry-leading private benefits exchange for businesses. Its flagship product, the Bright Choices® Exchange, is an online benefits store that is changing the way employers and employees buy benefits. Bright Choices helps employers manage their health care costs by setting predictable budgets through a defined contribution funding strategy while guiding employees to purchase better coverage of health, dental, vision, life, disability and other benefits. Advanced cloud computing infrastructure and robust security protection ensures continual access and safeguards confidentiality of data transmission. Liazon works with top national and regional insurance providers and supports businesses nationwide through a distribution network of leading broker partners. Liazon was acquired by Towers Watson, a leading global professional services company, in November 2013. To learn more about Liazon and the Bright Choices Exchange, go to www.liazon.com.