BEAVERTON, Ore.–CU Benefits Alliance said it has formed a new “association health plan” for credit unions.
The health plan was created to provide all the advantages of the bulk buying power of an association health plan but the freedom of not being lumped in with groups that may have an unhealthy employee population, the company said.
“Most association health plans place good risks with bad risks,” said CU Benefits Alliance. “In other words, credit unions with lower claims experience are aggregated with credit union with high claims. This makes the ‘healthy’ groups pay an inflated price to subsidize the below average groups. CU Benefits Alliance has solved this problem with its Interest Benefits platform.”
According to the company, the next-generation health program has multiple provider networks, depending on the geographic location of the credit union, to provide the broadest physician and hospital coverage available. It is structured to mirror the plan design options and lower pricing metrics of a large group (> 1,000 employees). For example, a credit union with five to 500 employees can now obtain economies of scale pricing, 20%-30% lower than purchasing employee benefits on their own merits, CU Benefits Alliance said.
Simple Pricing
In addition, CU Benefits Alliance said it has also made the health plan pricing very simple.
“Rates are predetermined, on a national basis, through 2019,” according to the company. “No more back-and-forth negotiation with a broker or insurance company. With some basic underwriting information, CU Benefits can provide a preliminary quote, in 24 hours, that will enable the credit union team to decide if it is a route they want to pursue.”
CU Benefits Alliance added the program also offers what it said its a unique, return-of-premium feature, typically only available to large groups.
“This allows the credit union to receive a portion of their unused premium back when the group has a better than expected claims experience,” it said. “Instead of getting a rate increase each year, it is possible to get money back.”
The program is available in 38 states to CUs with five to 500 employees.
For info, visit CU Benefits.