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. With an average savings per employee of 9.1%, the benefits to employers is immense. See how defined Contribution is changing the healthcare and benefits marketplace as we know it.

1. 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 TransparencyChanging Buying BehaviorControlling Cost
DEFINEDCONTRIBUTIONInsurance 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
?