In case you missed it, this morning’s Wall Street Journal has a front-page article about the growing shift to defined contribution plans, and notes that ConnectedHealth is one company seeing significant growth from this trend.
“Two big employers are planning a radical change in the way they provide health benefits to their workers, giving employees a fixed sum of money and allowing them to choose their medical coverage and insurer from an online marketplace.
Sears Holdings Corp. and Darden Restaurants Inc. say the change isn’t designed to make workers pay a higher share of health-coverage costs. Instead they say it is supposed to put more control over health benefits in the hands of employees.”
With the cost of annual premiums growing (a recent Kaiser Family Foundation and Health Research and Educational Trust survey estimates that on average, U.S. employers and workers spend $15,475 in annual premiums for health insurance this year for a worker with family coverage), employers are more eager than ever to engage their employees in making smart benefits selections.
More and more employers across the country are looking for transparency in their benefits, and turning to Private Exchanges where it’s easy for employees to understand the true cost of their plan options and make a smart choice based on their coverage needs as well as their budget.