Close Close

Life Health > Health Insurance

CVS To Offer Defined Contribution Health Plan

Your article was successfully shared with the contacts you provided.

NU Online News Service, April 22, 2:02 p.m. – Definity Health Corp., Minneapolis, has won a contract to offer a defined-contribution health plan to an unspecified number of employees of CVS Corp., Woonsocket, R.I., a major U.S. pharmacy chain.

CVS will buy high-deductible, catastrophic health insurance, then pay a flat amount into a “personal care account” for each employee participating in the defined-contribution program.

Employees who have high medical bills will face big out-of-pocket bills before the catastrophic health insurance kicks in, but they can see the providers of their choice.

Employees who have low medical bills can roll over the remaining account assets for use in later years, Definity says.

Enrollment will begin June 1.