Reform Center video series: Private exchanges
Private exchange enrollment is projected to nearly double in 2014 and could comprise 20% of the employer market by 2019. However, the trajectory of growth is highly uncertain and will be determined by the net impact of a multitude of industry headwinds and tailwinds.
Employers considering participation in private exchanges are primarily concerned about controlling costs and ensuring adequate plan choice for their employees. Since employers may cap defined contributions to employees’ coverage, it will be important for private exchanges to help facilitate a bend in the cost curve in order for exchanges to realize their full growth potential.