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How fast defined contribution coverage grows remains to be seen. Health benefits trends tend to grow slowly. Many companies prefer to wait to see how other companies fare after making a big switch before they try it on their own employees.
But benefits experts say more companies are starting to appreciate the stability defined contribution plans offer. The approach means a company isn’t on the hook for an unexpected expense if a wave of big medical claims hits during the year.
"It’s something they can budget for as opposed to something they are surprised with," Sperling said.
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