Abstract: A Web based system and method for designing and maintaining group health benefit plans that includes a method for converting typical employer sponsored group healthcare delivery systems (defined benefit) to employee owned private benefits (defined contribution) over a graduated three phase approach. The method and system merge a prospective Plan Sponsor's business objectives and needs with a business logic component for health plan design. Based upon information collected from the Plan Sponsor, the business logic component designs a customized health benefit plan and enables self-directed employee management of the plan. This system and method generally stabilize Plan Sponsor expenses relative to group health provision, and reduce the human capital required to implement and administrate group health benefits systems.