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CVS To Offer Defined Contribution Health Plan

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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.