NU Online News Service, Aug. 14, 12:24 p.m. – Booz-Allen & Hamilton, McLean, Va., a consulting firm, says the shift toward “defined contribution” health plans could bring health care benefits and traditional banking and investment services together, and send as much as $1 trillion flowing into individual health accounts each year.
Defined contribution health plans are employer-sponsored health benefits programs that resemble 401(k) defined contribution retirement plans.
An employer-sponsor contributes a specific amount of cash to an individual health account for each participating employee. The employee can use the cash to buy health coverage and pay for other health-related expenses. Most programs let employees keep any cash left in the individual accounts at the end of the year.