Policy Documents

Defined Contribution Health Insurance: Part 2

Greg Scandlen –
October 1, 2000

In part two of this report that begins on page 17, author Greg Scandlen writes;

In its purest form, Defined Contribution would allow employers to make funds available to employees, who would use that money to purchase coverage in the individual market.  The money would remain tax-advantaged because it would be available solely for the purchase of health insurance.  Employers might reimburse their workers for paid premiums, or they might use payroll withholding and send payments directly to the employee's chosen carrier.