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.