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As health care costs continue to climb, employers are showing increased interest in defined contribution plans but have yet to fully embrace the concept, the Washington, DC-based Employee Benefit Research Institute reports. One reason for the employers’ hesitation is the tight labor market, the report finds. It cites three main reasons why employers are considering some sort of defined contribution health benefit: cutting cost, backlash against managed care plans, and giving workers more choice and control over their benefits.
The report, "Defined Contribution Health Benefits," can be ordered by calling (202) 775-9132.