States face several important design decisions related to the level of employee choice offered in the SHOP Exchange that have implications for the cost and value of products that are ultimately offered. Wakely Consulting Group, with support from the State Network, has prepared a new report, “Design Considerations in Structuring Employee Choice in the SHOP Exchange,” that outlines the employee choice options being considered by states and the potential of various options to cause adverse selection in the SHOP Exchange. The report shows that while full employee choice may be a valuable option for some employers and employees, it will cause some increase in the cost of the plans offered. The report also offers policy options that could help mitigate the cost impact of full employee choice.
