Employers express caution toward private exchanges—One of 3 things you need to know this week in employee benefits

Most companies take wait-and-see approach to private exchanges

A pair of recent studies reveal that most employers are eyeing private exchanges with caution as a health benefits delivery option for the near future, CFO.com reports.

Citing results from the National Business Group on Health, the website reports that just 3% of large employers plan to use private exchanges next year for active employees. About one-third (35%) of employers are considering private exchanges for 2016. The NBGH findings are in line with those from Benfield Research, which show 4% of large companies and 6% of mid-size companies will use private exchanges in 2015, according to CFO.com.

This data mirrors the findings from our own 2014 Inside Benefits Communication survey, which reveal that while 32% of companies are considering a shift to private exchanges within three to five years, 55% will never offer health benefits through a private exchange.

EEOC sues second employer for violating federal rules through wellness program requirements

This month, the Equal Employment Opportunity Commission filed suit against a Wisconsin-based manufacturing company, because the agency claims the employer violated federal law—specifically, the Americans with Disabilities Act—for requiring an employee to submit to a biometric screening and health risk assessment then cancelling his medical coverage when he did not comply.

According to a report in Employee Benefit News, Flambeau Inc. employee Dale Arnold did not complete the required wellness actions, and as a result, his medical coverage was terminated.

The agency’s suit against Flambeau is its second against a U.S. employer over wellness program rules, garnering frustration from employer groups. “In general, you have to give us guidance; you can’t give guidance via lawsuit,” Gretchen Young, senior vice president of health policy at the ERISA Industry Committee, tells EBN. “For us, out of left field, comes the EEOC, not with guidance, but with a lawsuit saying this particular situation violates the ADA.”

This week’s hidden gem: Practitioner offers 6 tips to get benefits industry out of ‘neutral’

“Whether we like it or not, that [customization and instant gratification] is today’s era,” Scott Haverlock, senior manager of talent and total rewards at Niagara Bottling, Inc. told attendees at the 2014 Benefits Forum & Expo. He then challenged his industry colleagues: “Why are we still stuck in neutral in the benefits innovation space? Generally speaking, I find myself discouraged by my benefits peers and vendors I talk to.”

To spark more creative, leading-edge innovation, Haverlock offered six tips for benefits professionals, including how to leverage social science and communication best practices.