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Raytheon To Offer Defined Contribution Health Plan

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NU Online News Service, Oct. 1, 11:15 a.m. – The Raytheon Company, Lexington, Mass., has agreed to offer a defined contribution health insurance program from Definity Health, Minneapolis, to 26,000 employees in Texas and Arizona starting in January.

Employers participating in the Definity program contribute a fixed amount to a health account for each employee and also buy high-deductible major medical coverage.

Employees can use the account assets to cover the cost of routine expenses and the major medical insurance for catastrophic expenses. Employees who stay healthy can keep the assets left over in the personal health account.

Other large companies offering the Definity program include Textron Inc., Providence, R.I., and Aon Corp., Chicago.