Dive Brief:
- Financial services provider Fidelity announced the launch of a new private health insurance, and employee benefits shopping website called Fidelity Health Marketplace.
- Fidelity is targeting the exchange at small and midsize businesses with up to 2,500 employees, which it says have largely been underserved by private exchange offerings compared to larger businesses.
- As an integrated health, wellness, and financial solution, the product's "real distinguishing point is this ability to bring the health and financial wellness together,” Fidelity's Joe Laurin told Bloomberg.
Dive Insight:
Private exchange adoption has not met earlier expectations. But it continues to grow and benefit companies are banking on popularity increasing over time.
Consulting firm Accenture had predicted 12 million employees would be using the sites in 2016, though the real number came in at about 8 million workers, Bloomberg noted, adding Accenture no longer backs its former estimate that 40 million people would utilize them by 2018.
However, numerous big benefit firms are offering them, including Willis Towers Watson, Aon, and Marsh & McLennan’s Cos.’s Mercer unit, Bloomberg noted.
A survey by the Kaiser Family Foundation found roughly 17% of employers say they are weighing a move to a private exchange.