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Published: April 1, 2000

 
 

Health Care's New Electronic Marketplace

Who in 1970 would have predicted that in 2000, tens of millions of Americans would be actively managing their retirement portfolios with home computers? We see an analogous transition about to happen with health benefits. Indeed, employer-managed, defined-benefit health plans will be largely gone within the next 15 to 20 years, and perhaps sooner.

Their demise seems inevitable — to winners and losers alike in the coming transition to defined-contribution, consumer-driven health benefits.

Reprint No. 00204


Authors
J. Philip Lathrop, lathrop_phil@bah.com
J. Philip Lathrop is an advisor on managed care to Booz Allen Hamilton.

Gary Ahlquist, ahlquist_gary@bah.com
Gary Ahlquist is a senior vice president with Booz Allen Hamilton’s Chicago office. He specializes in the strategy-driven transformation of insurance companies, health plans, and health-care providers.

David G. Knott, knott_david@bah.com
David G. Knott is a vice president with Booz Allen Hamilton in New York. Dr. Knott leads the firm’s strategy work in the health services sector.
 
 
 
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Resources

  1. J. Philip Lathrop and David C. Carlebach, "HMOs 'R' Us: A Prescription for the Future," strategy+business, Fourth Quarter 1998: Click here.
  2. John McCarron, "Stand By for the Next 'Worst Leg' of Our Health Insurance Trip," Chicago Tribune, February 14, 2000
  3. Shailagh Murray, "Why Health Insurance That Works Still Fails to Catch on Broadly," The Wall Street Journal, January 18, 2000
  4. Ron Winslow and Carol Gentry, "Companies Consider Letting Employees Handle Their Health-Benefits Decision," The Wall Street Journal, February 8, 2000
  5. American Association of Health Plans, Washington, D.C.: Click here.
  6. eBenX, Minneapolis, Minn.: Click here.
  7. Health Care Financing Association, Baltimore, Md.: Click here.