New Survey Shows Many Employees Would Prefer A Defined Contribution Approach to Health Care Benefits

Federal Health Care Reform

A new report from the Employee Benefit Research Institute reveals 60 percent of employees would prefer their employer to give them the money the employer currently spends on health care benefits and then let them choose their health insurance and how much to spend on it.  According to EBRI, just 40 percent of employees prefer their employer continue to choose and pay for health insurance the way they do now.  The EBRI survey also found that if employer-provided health benefits were to become taxable, 47 percent would continue with their current coverage, 26 percent would switch to a less costly employer-provided plan, but 27 percent would seek insurance directly from an insurer or drop coverage altogether.  According to the report, "as employers consider whether to continue offering coverage, and if they do, which options to offer in the plan, data on worker preferences will be useful toward making informed decisions about the future direction of employment-based health benefits."