Minnesota State Trade Launches New Health Care Initiative for CUs

The Minnesota Credit Union Network said it launched a new health insurance plan initiative that will allow credit unions to strengthen their negotiating power with larger risk pools to lower costs and improve administrative efficiencies.

MnCUN, which formed an association health plan that was approved by the Minnesota Department of Commerce, said the new program was officially introduced earlier this month as the Minnesota Credit Union Employees Benefits Plan.

These plans work by enabling businesses of a common association or industry to obtain healthcare coverage as if they were a single large employer, which bolsters their negotiating leverage with bigger risk pools and reduces costs while improving administrative operations.

MnCUN worked with insurance broker Lockton Companies in Kansas City, Mo., and Medica, a Minneapolis-based health insurance provider, to design the association plan for credit unions.  Capstone Administrators will manage the Minnesota Credit Union Employees Benefits Plan.

Minnesota’s financial cooperatives will be offered six different health plan designs with both preferred provider organizations and high deductible health plan options. In addition, Medica provides several network choices including an open access national network and six lower cost regional accountable care organization networks.

As of mid-October, the Minnesota Credit Union Employees Benefits Plan has received nearly 40 requests for quotes from member credit unions headquartered in the state. Coverage under the plan is available to credit unions that have been a MnCUN member for at least 30 days.

“Minnesota credit unions are using the cooperative model to take advantage of economies of scale and reduce the cost volatility of employee health plans while providing high-quality, health insurance options for employees,” MnCUN President/CEO said.