private exchanges

Workplace Health Insurance—It’s Not Dead Yet


A lot of people are betting on a future without employer-sponsored health insurance. Entrepreneurs are creating businesses based on this model. Health insurance brokers are courting individuals and enjoying record-breaking business growth. And politicians from all parties are proposing limits to the favorable tax treatment of workplace health insurance. Meanwhile, employers are acting like business as usual in administering their health insurance plans.

They continue to rely on lame tactics like wellness programs and private exchanges to control health insurance costs. When just a few years ago employers were mocking the return on investment (ROI) claims of workplace wellness programs. Today they vainly commit to these programs despite all the evidence their initial skepticism was right. They embrace the private exchanges created by big insurers and big consulting firms. The same groups they’ve been partnering with for decades and whose only talent is to create more ways to shift costs to employees. So in a sense it really is business as usual for employment based health insurance. Without optimism or enthusiasm employers continue to employ the same follow-the-leader strategies they’ve been using since, well, forever.

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