What is the Largest Driver of Benefits Selection on Private Exchanges?
According to Liazon’s latest survey of employers and employees, price is not the largest driver of benefits selection on our Exchanges. The majority of employees—61 percent—chose the benefits they did because they provided the right level of coverage. Only 30 percent selected their benefits because they provided the lowest cost.
Employees are happy now…
Our survey reveals employees genuinely enjoy being in the driver’s seat when it comes to choosing their benefits. When asked if they preferred to choose for themselves or have an employer do so, an overwhelming 96 percent said they would rather make their own selections. Further, our survey shows that 96 percent of employees indicated that they are satisfied with their exchange experience.
…and happy over time.
Our survey also found that employees are happier with their benefits selections on our Exchanges when compared with the general population. After a year, 95 percent of employees using a Liazon-powered Exchange were satisfied with the benefits they purchased. In comparison, the 2014 & 2015 MetLife Employee Benefit Trends Study cited that, on average, 45 percent of employees across small, medium and large-sized businesses indicated they were not confident with the decisions they made at their last annual enrollment.
Benefits for Employers, Too
From the employer perspective, the study found that eight out of 10 employers are satisfied with the exchange overall, seven out of 10 have experienced streamlined administration, and seven out of 10 were able to stabilize or even reduce benefits costs in the first year after moving to an exchange.
“This year’s data show us that empowered and informed employees are capable of making the right benefits decisions—ones they feel confident about down the line,” said Ashok Subramanian, Liazon’s co-founder and chief executive officer. “As the landscape shifts toward greater adoption of the private exchange model, it will be key for employers to recognize that, with proper support and education, autonomy can be a powerful and motivating factor for employee engagement in benefits.”
Download the complete survey report here.