22, 2013 (PLANSPONSOR.com) – A new survey reports high levels of familiarity
and interest in exploring defined contribution (DC) health benefits and private
health care exchanges, with strong evidence that 2015 will be a tipping point
year for adoption.
The survey from Alegeus Technologies, a health care and
benefit payments provider, found that as DC health benefits and private health
care exchanges gain traction in the market, education and support services will
be needed to ease the transition for employers and consumers. Of those
surveyed, 73% claimed to be familiar with DC benefit programs and 55% with
private health care insurance exchanges.
The research also revealed that “a significant education gap”
still exists. Many of those individuals that claimed familiarity were unable to
correctly answer basic questions about what they are, how they function, who
they are best suited for and the benefits they offer, as well as several common
misconceptions being revealed.
Despite these misconceptions, the survey indicated that
respondents still saw significant advantages in DC health benefits and private
exchanges. These advantages include the potential to lower their organization’s
health benefit costs, offer a greater variety of benefit plan options to
employees and continue to offer benefits that might otherwise have been in
Interest levels in adopting were found to be
high, according to the survey. Of those familiar with these benefit programs,
90% expressed interest in exploring defined contribution and 85% expressed
interest in exploring private exchanges for their own organization.