Which statement about private health insurance exchanges and Small Business Health Options Program (SHOP) exchanges is accurate?

The chosen statement highlights a significant aspect of the relationship between private health insurance exchanges and SHOP exchanges. Private exchanges are platforms that allow employers, particularly small businesses, to offer a range of health insurance plans to their employees while potentially impacting the enrollment figures in SHOP exchanges. When an employer chooses to participate in a private exchange instead of a SHOP exchange, it can lead to fewer enrollments in the SHOP marketplace. This reduction in enrollment can in turn affect the financial viability of SHOP exchanges due to decreased participation and revenue.

The trend of employers looking for more flexible options in the form of private exchanges can diminish the utility of SHOP exchanges, which are designed specifically to cater to small businesses seeking to provide health insurance to their employees. As small businesses may prefer the customized and varied offerings available in private exchanges, this could shift their choices away from the SHOP program altogether. Hence, the concern that private exchanges might siphon off a portion of the enrollment from SHOP is a valid consideration in the landscape of health insurance options for small businesses.