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Future of Health Insurance?

“Companies will seek to protect themselves from unexpected high medical costs by shifting workers toward health plans that involve defined contributions instead of defined benefits, similar to the shift that has happened with retirement benefits, writes Peter Orszag, a former Office of Management and Budget director.”

“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.”

We are moving faster to a YOYO (you’re on your own) economy. Details in Bloomsburg Businessweek
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Future of Health Insurance?
Future of Health Insurance?
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