Smart Benefits: Tufts’ RightChoice Keeps it Simple for Consumers
Monday, November 18, 2013
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.
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.
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.
Related Slideshow: Central MA Non-Profit Hospital CEO Pay, From Least To Most
Here are the total annual compensation amounts for the CEOs of the four non-profit hospital groups in Central Massachusetts. The source is each hospital group’s latest available 990 Return of Organization Exempt from Income Tax, which is filed with the IRS and available at Guidestar.org. The CEOs are shown here, from lowest to highest total compensation.
#4 Winfield Brown
President and CEO, Heywood Healthcare, with campuses in Athol and Gardner
Note: Henry Heywood Memorial Hospital and Athol Memorial Hospital merged in January 2013 to form Heywood Health Care. Brown, who had been president and CEO of Athol Memorial, became head of Heywood Health Care in August 2011. Daniel Moen, who had been president and CEO of Henry Heywood Memorial, was terminated in January 2011. His total compensation for fiscal 2011 was $993,456.
#1 John O'Brien
Former President and CEO, UMass Memorial Health Care, with campuses in Worcester, Clinton, Leominster, Marlboro and Palmer
Note: John O’Brien retired as president and CEO in January 2013. Dr. Eric Dickson, MD, became the new president and CEO the following month. The UMass Memorial news release announcing Dickson’s appointment did not include his compensation package. According to UMass Memorial’s latest available 1099 form, Dickson received a total of $650,589 in compensation during the fiscal year that ended September 30, 2012.
- Smart Benefits: 5 Reasons Why Healthcare Reform Hurts Workers
- Smart Benefits: HSA Contribution Limits Rise For 2014
- Smart Benefits: Health Insurers Go Retail
- Smart Benefits: Employers Are Okay With Sleeping On The Job
- Smart Benefits: 5 Health Benefit Cost-Cutting Trends To Watch In 2014
- Smart Benefits: Be Prepared For Fall Open Enrollment Changes
- Smart Benefits: Flexible Spending Accounts Get More Flexible