Smart Benefits: Tufts’ RightChoice Keeps it Simple for Consumers

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Monday, November 18, 2013

Amy Gallagher, GoLocalWorcester Business/Health Expert

Tufts Health Plan is the first insurance carrier in Rhode Island and Massachusetts to offer a defined contribution model to large employers – those with 51 or more employees. Called RightChoice, Tufts’ defined contribution model allows an employer to fix a certain dollar amount as its contribution, and employees pay or save the difference, depending on the plan they select.

Defined Contribution’s Growing Appeal

Defined contribution models are quickly gaining the attention of employers, who like the ability to predict healthcare costs for budgeting purposes and simplified plan administration. And employees appreciate the greater options available, rather than just having one or two plans to choose from.

Options Abound

In its online marketplace, Tufts presents pre-bundled plan sets for employers with 51 to 99 employees – six in Rhode Island and eight in Massachusetts. For groups with 100 or more employees, Tufts will customize bundles, giving even more plan flexibility.

The plan bundles include choices of HMO, PPO and HSA plan selections, with a range of deductible options. There’s even a set that features a tiered network for further savings. Depending on the bundle selected, there can be as much as a 35% price difference between the lowest and highest cost plan offered.

Simplified Choice

With RightChoice, employers have the flexibility to offer up to five healthcare plans to employees. But more choices can mean tougher decisions for employees, so Tufts helps consumers select between plans with its simplified technology.

Before employees select a plan, they complete a short, easy-to-use survey that assesses what plan features and prices are important to them. Depending on their answers, consumers are guided to one or two plans that could be the best fit. Once they choose a plan, they can enroll online.

Is it the RightChoice?

If the growing, national trend is any indication of what Tufts can expect in the local market, its new defined contribution model may just be the right choice for large employers and employees.

Amy Gallagher has over 21 years of healthcare industry experience guiding employers and employees. As Vice President at Cornerstone Group, she advises large employers on all aspects of healthcare reform, benefit solutions, cost-containment strategies and results-driven wellness programs. Amy speaks regularly on a variety of healthcare-related topics, and is often quoted by national publications on the subject matter. Locally, Amy is a member of SHRM-RI, the Rhode Island Business Group on Health, and the Rhode Island Business Healthcare Advisory Council.

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