Booz-Allen Forecasts Trillion Dollar Opportunity for U.S. Financial Services Providers by 2010.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 14, 2001 Increased Adoption of Defined-contribution Health Care Plans Leading to Convergence of Health Care Benefits and Financial Services Industries According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a newly-published report from Booz-Allen & Hamilton, an emerging revolution in how companies provide healthcare benefits could spark spark, in electricity: see arc. (language) SPARK - An annotated subset of Ada supported by tools supplied by Praxis Critical Systems (originally by PVL). http://sparkada.com. a convergence of healthcare benefits and traditional banking and investment services, and create an annual flow of up to $1 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. into individually-held accounts, an unprecedented opportunity for U.S. financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. providers. The key to this radical shift is the growing popularity of defined-contribution health plans, which are consumer-directed accounts that operate in a similar way to 401 (k) plans for retirement benefits. Employees are given a specific amount of pre-tax employer dollars, and then shop online for healthcare coverage by choosing among options that range in price and benefits. No new money is created, but defined-contribution health plans have the potential to create 50 to 100 million new individual accounts over the next ten years, to manage as an investment portfolio for maximum value and future security. The shift of $1 trillion a year from corporate checking accounts and institutional (insurance) pools to individual accounts (needing some type of professional management) would represent a tidal wave tidal wave, term properly applied to the crest of a tide as it moves around the earth. The wavelike upstream rush of water caused by the incoming tide in some locations is known as a tidal bore. of change, destruction, and opportunity. "The defined contribution model offers several advantages," said Gary Ahlquist, senior vice president at Booz-Allen & Hamilton: "Out-of-control health benefits costs, a move toward healthcare consumerism consumerism Movement or policies aimed at regulating the products, services, methods, and standards of manufacturers, sellers, and advertisers in the interests of the buyer. , and improvements in e-commerce and insurance infrastructures are driving employers to consider defined-contribution models." In fact, several major employers, including Medtronic and Motorola, have already started offering defined-contribution plans Defined-Contribution Plan A retirement plan wherein a certain amount or percentage of money is set aside each year for the benefit of the employee. There are restrictions as to when and how you can withdraw these funds without penalties. as a health benefit option. Healthcare benefit dollars have historically been managed outside the confines con·fine v. con·fined, con·fin·ing, con·fines v.tr. 1. To keep within bounds; restrict: Please confine your remarks to the issues at hand. See Synonyms at limit. of the traditional consumer banking and investment system. Defined-contribution programs and innovative funding approaches can change all that by putting these sums into individual accounts with both short-term and longer term financial management needs. The Opportunity According to the report, the convergence of healthcare benefits and traditional banking and investments services created by defined-contribution health plans also will lead to significant opportunities for aggregation and cross-selling. According to David Knott, vice president at Booz-Allen & Hamilton, "Super-convergence raises a number of new business opportunities - who will provide the advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal that individuals will need to manage these funds, who will take the lead in the innovation of new insurance and financial services products, and who will distribute these new offerings to consumers?" "The key to the success of such an organization is its potential to simplify and improve consumer service from where financial and healthcare institutions are today." A copy of the report, "The Next Trillion-Dollar Opportunity," can be found on the Booz-Allen website at: http://extfile.bah.com/livelink/livelink/78186/?func=doc.Fetch&nodeid=78186 or by contacting Karen Guterl at 212-551-6516; guterl_karen@bah.com. About Booz-Allen & Hamilton Founded in 1914, Booz-Allen & Hamilton pioneered the business of management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects . Today, it is one of the world's leading international management and technology consulting firms Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , with more than 10,000 employees in over 100 offices worldwide and sales in excess of $1.8 billion. Booz-Allen & Hamilton corporate headquarters are located in McLean,Virginia. Booz-Allen's client base includes many of the world's largest industrial and service corporations, as well as major institutions and government bodies around the world, including most U.S. departments and agencies. Booz-Allen provides services in strategy, systems, operations and technology to clients on six continents Six Continents is a large retail PLC in UK which split into Six Continents Retail known as Mitchells and Butlers plc. The hotels and soft drinks business of Six Continents PLC is now known as InterContinental Hotels Group PLC. . The firm delivers a powerful combination of strategy, e-business expertise, industry knowledge, functional capabilities, implementation expertise and technical know-how to organizations facing the challenges of the new economy. Consistent with its position as a business thought leader, Booz-Allen sponsors strategy+business, a quarterly journal containing the best ideas in business. Visit the Booz-Allen Web site at www.boozallen.com or the strategy+business Web site at www.strategy-business.com. |
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