Increasing Purchaser Power vs.
Defined Contribution
Lee N. Newcomer, M.D.
Cheif Medical Officer and
Vice President of Medical Policy
Vivius, Inc.
Agenda
1. What’s Wrong: The Rational
Consumer in an Irrational
System
2. Creating a Rational System:
Defined Contribution
3. Policy Issues for this
Administration
Don’t Know Much
About History….
• Indemnity insurance
• Managed care
The Problem:
Rational Consumers
in an
Irrational System
Defined Contribution
Employee receives
fixed amount of money
to purchase
health care coverage.
Myths About Defined
Contribution
•
•
•
•
It’s a take away
Discriminates against older workers
It’s taxable
It can’t be done with current law
Market Responses
•
•
•
•
What’s your bid?
Charles Schwab
Make me a doctor
Personal Healthcare Systems
(PHS)
What’s your bid?
Charles Schwab
Make Me A Doctor
Personalized Healthcare
System
Policy Issues
• Provider monopolies
• “Use it or lose it”