Health Insurance Daily

Employers Are Moving Away From Traditional Benefit Plans According To A Recent Eastbridge Study

Employers are moving away from traditional benefit plans according to a recent Eastbridge study.

Changes in the healthcare and insurance industry have been building for many years. Employers are seeking to control their benefit costs and are shifting more decisions as well as more of the cost to employees. Employers are moving towards defined contribution benefits and towards more voluntary employee-pay-all benefits (as opposed to employer-funded benefits).

In a recent survey of voluntary insurance carriers, the respondents were convinced that employers and employees are more interested today in products that cover the deductibles and out-of-pocket expenses associated with health care than they were in the past. Eighty-five percent of those surveyed agreed or strongly agreed, up from 65 percent in 2002.

"We're also seeing a migration from employer-paid benefits to voluntary benefits," remarks Gil Lowerre, president of Eastbridge. "Three-fourths of the carriers surveyed say they are seeing an increase in voluntary coverages that were previously fully or partially employer paid." Only 10 percent of those surveyed did not recognize this trend.

This article was provided by Business Wire Inc. July 18th, 2006.

posted by Mike @ 11:50 PM