Defined contribution programs: how physicians and medical groups can prepare now for their impact

Facing continued premium increases and escalating employee dissatisfaction, employers and other purchasers are implementing defined contribution programs for health care benefits. These programs depart from traditional health benefits by offering employees more flexibility and using Internet services to streamline administrative processes. This article gives an overview of these defined contribution programs and suggests steps medical practices can take to prepare for them. While these programs remain largely untested, they could present physicians with opportunities to improve financial performance and enhance patient satisfaction.