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A Defined Contribution Health Benefit is a consumer-driven health care scheme in the United States in which employers choose a set dollar amount to contribute towards an employee's healthcare.
Under a Defined Contribution Health Plan the employee is responsible for researching and purchasing his or her own insurance policy. Defined contribution health plans are an alternative to traditional employer-sponsored group health insurance plans. A defined contribution health plan by itself is not a health insurance plan, but rather a health benefits strategy. Employer contributions can be made on a tax-free basis when offered under a qualifying plan such as a Section 105 Medial Reimbursement Plan.[1]
^"26 U.S. Code § 105 - Amounts received under accident and health plans". LII / Legal Information Institute. Retrieved 2018-06-06.
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