Going To Extremes

Dec. 21, 2004
Sometimes experts don't know what's best.

Several years ago, some industry experts proposed plans in which employers would gross up employees' pay by the amount they currently were spending on health-care costs, and employees would be on their own to find the plans that fit their needs. Typically, the amount of the gross-up would be several thousand dollars per employee. That version of defined-contribution health-care didn't get very far. For one thing, grossing up employees' pay also would boost their taxable income. More importantly, the U.S. health-care system isn't set up to easily accommodate solo purchasers. "The individual marketplace, in most states, is such an ugly thing," says Scott Keyes, a Minneapolis-based senior consultant with Watson Wyatt & Co., Washington, D.C. Individuals with chronic conditions, such as diabetes, could see premiums double or triple if they tried to obtain coverage on their own, he says.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!