This report draws heavily from our report on Defined Contribution Healthcare, which specifically discusses the various models of defined contribution health plans. For that report, PricewaterhouseCoopers conducted interviews with U.S. healthcare stakeholders from July through October 2000. These interviews included more than 50 top executives of employers, insurers, e-health companies, and policymakers. PricewaterhouseCoopers also surveyed more than 800 consumers on their perceptions and preferences of current health benefits. Conclusions Choice will be the most prevailing change in employee health benefits in the coming years, and the Internet will be its enabler.
Consumers have more choices in mutual funds, long-distance services, and salsa than ever before.
Employers are moving this direction already, and choices will continue to expand. Just as the Internet enables travelers to view multiple ways and prices to travel from New York to Chicago, so employees will have multiple choices and price designs for their health benefits. Employers don't want to jump into defined contribution plans, but will move incrementally toward web-enabling benefits processes and shifting more responsibility to employees. Our research indicates that few employers are willing to adopt self-directed, otherwise known as defined contribution, health plans today. However, as they adopt more web-enabled functions, they will move more responsibility for choices to employees.