June 17, 2014 (PLANSPONSOR.com) – Members of the health insurance industry, including insurers and brokers, expect more employers to adopt defined contribution (DC) strategies for health care benefits.
A survey by exchange technology provider Array Health found 33% of respondents anticipate more employers will use a DC
model than will use the traditional health benefits model within three years. Sixty-nine percent say more employers will be using a DC model over a traditional model within five years, and 88% believe more will be using a DC model within six years. Ninety-three percent of respondents believe more employers will be using a DC model over a traditional model after 2020.
Nearly all (99%) of survey respondents say employers are at least "somewhat aware" of private exchanges for health insurance. Fifty-seven
percent of all survey respondents say they think the majority of employers will
offer their benefits through an exchange before the end of 2016. Health
insurers are slightly more optimistic, with 63% predicting the majority of employers
will use a private exchange to provide benefits to their employees by the end
The survey, which included responses from 88 leaders across the
health service industry, was conducted in late May. The majority of respondents
were either health insurers (28%), or state or federal government agencies
The full text of the survey report can
be downloaded here.