Defined Contribution Marketplace Trends: Shaping the Industry
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65% of employers believe health benefits more valuable when employees control how they spend contributions Value of Cost Transparency $ 342 $ 82 76% DECREASE Employee Cost Savings Through Tax Credits 2013 2014 ? 2013 $ 9,098 2014 $ 8,342 9.1% DECREASE Average Healthcare Costs (PER EMPLOYEE) Encouraging Healthcare Education Drives Down Cost Value of Employer Contribution 2013 6% 2014 8% 2% INCREASE Employers Offering Defined Contribution Average Individual Health Insurance Premium $ 381 ESTIMATED IN 2015 Coverage Through Private Insurance Exchanges 2,500,000 2014 5,000,000 + 2015 Average Annual Employer Contribution $ 817 SINGLE COVERAGE $ 1,892 FAMILY COVERAGE Long-term Cost Trends believe they will help reduce them through competitive market forces 57% www.HealthcareTrendsInstitute.org SOURCES: Kaiser Family Foundation PwC Health and Well-being Survey (2014) 2014 AonHewitt Health Care Survey © Copyright 2014. Healthcare Trends Institute. Providing Transparency Changing Buying Behavior Controlling Cost DEFINED CONTRIBUTION Insurance Marketplace solutions shaping the industry? How are Improving Predictability of Health Care Costs 59% of employers view private exchanges as an effective way to improve predictability Moving to Private Exchanges 32% of employers are considering moving their employees to private exchanges in the next 3 years 34% of employees had no idea how much their employers contributed toward health care costs ?
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As healthcare costs rise for employers and employees, one of the trends that has been reshaping the market is that of defined contribution—specifically through a defined contribution marketplace. Allowing employers to provide a specific amount of money towards an employee’s healthcare costs, the employee is able to shop around to find the plan that best suits his or her needs.
Transcript of Defined Contribution Marketplace Trends: Shaping the Industry
65%of employers believe health benefits more valuable when employees control how they spend contributions
Value of Cost Transparency
$342$82
76% DECREASE
Employee Cost Savings Through Tax Credits
2013
2014
?2013 $9,0982014 $8,3429.1% DECREASE
Average Healthcare Costs(PER EMPLOYEE)
Encouraging HealthcareEducation Drives Down Cost
Value of EmployerContribution
2013 6%2014 8%
2% INCREASE
Employers O�ering Defined Contribution
Average Individual HealthInsurance Premium
$381ESTIMATED
IN 2015
Coverage Through Private Insurance Exchanges
2,500,0002014
5,000,000+2015
Average Annual Employer Contribution
$817 SINGLE COVERAGE
$1,892 FAMILY COVERAGE
Long-term Cost Trends
believe they will help reduce them through competitive market forces
57%
www.HealthcareTrendsInstitute.org
SOURCES:
Kaiser Family Foundation
PwC Health and Well-being Survey (2014)
2014 AonHewitt Health Care Survey© Copyright 2014. Healthcare Trends Institute.
Providing TransparencyChanging Buying BehaviorControlling Cost
DEFINED CONTRIBUTIONInsurance Marketplace solutions shaping the industry?
How are
Improving Predictability of Health Care Costs
59%of employers view private exchanges as an e�ective way to improve predictability
Moving to Private Exchanges
32%of employers are considering moving their employees to private exchanges in the next 3 years
34%of employees had no idea how much their employers contributed toward health care costs
?
