Anna Wilde Mathews of the Wall Street Journal recently cited ConnectedHealth in an article that discusses changes in the way employers are offering health benefits to their staff.
To control costs and health-care spending, more employers are shifting to a defined contribution model where they provide employees a fixed sum of money for health care and let them select their own insurance plan with those funds from an online marketplace. While this approach has proven to be beneficial for employers, there is industry concern that employers are passing more of the costs of coverage on to their employees. However, among the ConnectedHealth client base, employers typically contribute 70-75% of the cost of premium to their employees, which is comparable to employer contributions with traditional defined benefits. And for this year, so far employers are increasing the amount contributed 2-3% over the previous year.