This document outlines 3 strategies to help employers prepare for upcoming health reform: 1) Take a defined contribution approach to limit financial responsibility for mandated benefits. 2) Use health reimbursement arrangements to fund deductibles and coinsurance rather than just premiums. 3) Provide choice and education to employees about different health plans and their costs/benefits to encourage lower utilization. The rest of the document provides background on the current US health insurance system and an overview of how health reform will impact employers and employees through mandated benefits and the individual mandate.