Defined contribution health plans--coming to a payer near you?

In a defined contribution health plan, the employer pays each employee a specified dollar amount as a subsidy for health insurance. The employee gets more control of the health coverage buying decision, choosing from a wide variety of employer-sponsored benefit and network options, and uses the employer dollars to purchase a coverage plan. For medical groups, defined contribution health plans pose a heightened risk of adverse selection and increase the influence of perceived provider quality on market share.