Defined Contributions Define Health-Care Future: Peter Orszag


Over the next decade, we are likely to see a shift in health insurance in the U.S.: So-called defined-contribution plans will gradually take over the market, shifting the residual risk of incurring high health-care costs from employers to workers.

The market today is dominated by “defined-benefit” plans, under which companies determine a set of health-insurance benefits that are provided for employees. These will gradually be replaced by defined-contribution plans, under which companies pay a fixed amount, and employees use the money to buy or help pay for insurance they choose themselves

Comment: More and more employers will come to this realization soon enough as they run out of options to contain the cost.  Don’t wait until the defined contribution plan becomes the last option available.  Implement the program now so you can get a leg up on your competition.  A Visor BetterFits  program can help you implement a comprehensive plan specifically designed to each of your employee’s needs.