Minnesota Credit Unions Form Association Health Plan
Thursday, October 24, 2019
St. Paul, Minn. – On October 1, the Minnesota Credit Union Network (MnCUN) celebrated the launch of the Minnesota Credit Union Employee Benefits Plan with a reception at Wings Financial Credit Union in Apple Valley, Minn.
The state’s trade association for credit unions formed an association health plan that was approved by the Minnesota Department of Commerce in late August. To date, the plan has received nearly 40 requests for quotes from member credit unions headquartered in Minnesota. Coverage under the plan is available to credit unions that have been MnCUN members 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,” said Mark Cummins, President and CEO of MnCUN.
Association Health Plans work by allowing businesses of a common association or industry to obtain healthcare coverage as if they were a single large employer; strengthening negotiating power with larger risk pools and lowering cost while improving administrative efficiencies.
The Minnesota Credit Union Network engaged Lockton Companies and Medica to design the plan and put the pieces in place to offer it to Minnesota credit unions.
“Lockton is pleased to partner with the Minnesota Credit Union Network to help their members manage health care costs to better serve their mission as non-for-profit financial cooperatives,” said Justin Truckenbrod, Senior Vice President Total Rewards and Employee Benefits at Lockton Companies.
The Plan will offer credit unions six different health plan designs with both Preferred Provider Organization (PPO) and High Deductible Health Plan (HDHP) options. In addition, Medica provides several network choices including an Open Access national network and six lower cost regional Accountable Care Organization networks.
“Medica is proud to offer Minnesota credit union employees choice and cost savings in their health plan," said Paul Crowley, Senior Vice President of Commercial Markets Medica. “This provides credit unions with flexibility to design health plan options that fit their employee groups and provides the trust and confidence that comes with partnering with an established health insurer.”
Capstone Administrators will manage the Plan as a third-party administrator using industry leading technology to streamline the benefits process from start to finish for enrolled credit unions.
“Capstone Administrators is looking forward to making things simpler for Minnesota’s credit unions so they can focus on serving their members,” said Stephen James, Sales Consultant, Capstone Administrators.
About Capstone Administrators
Capstone Administrators provides comprehensive administrative solutions for trade associations, MEWA’s and single employer benefits plans. Our team of group benefit plan experts is dedicated to making things simpler so our clients can spend more time on their employees and their families. We provide our clients with state-of-the-art technology for enrollment and eligibility, compliance assistance, financial administration, COBRA administration and a variety of other services.
Medica (medica.com) is a non-profit health plan headquartered in Minnesota. The company serves communities in the heart of America by providing health care coverage and related services in the employer, individual, Medicaid and Medicare markets. It operates in Minnesota, Iowa, Kansas, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota and Wisconsin.
Medica’s vision is to be trusted in the community for our unwavering commitment to high quality, affordable health care. Medica’s annual report, which includes the organization’s community involvement activities, is available online.
About Lockton Companies
Lockton is a global professional services firm with 7,500 Associates who advise clients on protecting their people, property and reputations. Lockton has grown to become the world’s largest privately held, independent insurance broker by helping clients achieve their objectives. For 11 consecutive years, Business Insurance magazine has recognized Lockton as a "Best Place to Work in Insurance.”
The Lockton Total Rewards Consulting Practice helps employers use all available tools to attract, retain and motivate employees. Our process for data-driven decision-making and analysis drives human capital costs to their most efficient levels, based on strategy and options.
About Minnesota Credit Union Network
The Minnesota Credit Union Network is the statewide trade association that works to ensure the success, growth and vitality of Minnesota credit unions. With nearly $24 billion in assets, Minnesota credit unions are local, trusted financial cooperatives that serve 1.8 million members at almost 400 branch locations around the state. As not-for-profit institutions, credit unions give back to the communities they serve. For more information, visit www.mncun.org.