Healthcare In Crisis: Tufts, Vanguard To Launch New Health Insurance Program

Wednesday, September 5, 2012

Tufts, Vanguard To Launch New Health Insurance Program

Tufts Medical Center, its physicians, and the for-profit Vanguard Health Systems are sponsoring the first member-run health insurance plan in Massachusetts.

Tufts and its partners won federal approval and $88.5 million dollars to launch a new health insurance option — Minuteman Health — around lower cost hospitals and providers with benefits designed by the members. And members will decide how to spend surpluses or profits, says Minuteman Health board chair Ellen Zane.
“The surpluses will either go back to reducing the cost of the premiums or enhancing the benefits in the products. That is a major difference for this kind of product in the market,” Zane said.

Organizers are working with the Massachusetts Division of Insurance to meet state regulations. They hope to have the plan up and running in at the beginning of 2014. The federal investment will help build initial reserves for the program.

Eric Beyer, president and CEO of Tufts Medical Center, says 17 hospitals in MA have expressed interest in joining the Minuteman Network.

“This is an interesting and exciting development that could shake up the health insurance market for individuals and small employers,” says Nancy Turnbull, Senior Lecturer on Health Policy and Associate Dean for Educational Programs at the Harvard School of Public Health. “The key to success will be whether the plan offers products that are more affordable and have an attractive provider network. The coop model is new to Massachusetts but will, I think, resonate with many consumers who would relish being part of a health plan in which they have a real voice.”

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Statistics Collection

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