Minnesota Cooperative Solutions for Health

CareDairy Directors’ Leadership Conference

April 4, 2012

Char Vrieze

Cooperative Network

40 Square Cooperative Solutions

40 Square Formation Process

• Like FHCW, this project is being led by Cooperative Network

• Determined coverage the market wanted and needed Professional telephone survey done of more than

4,000 producers Current insurance offerings in Minnesota were

analyzed

• Hired staff Small team supplemented by cooperative

members

Cooperative PurposeThe cooperative is organized to:

a) Form a cooperative specific to health care issues

b) Educate members on health care – providing accurate information

c) Provide wellness information and wellness plans – help individuals make healthier decisions

d) Provide additional health coverage options Competition in the marketplace Creating a pool of actuarial data to prove farmers not as risky as

perceived Dedicated to serving farmers and agribusiness with quality

coverage

40 Square Partners• United Farmers Cooperative (UFC)

• AgStar Financial Services (AgStar)

• Have been consistent, lead partners throughout

• Lead partners in plan designs

40 Square PartnersKey Benefit Administrators (KBA)

– Contract agreements with insurers in developing and designing health and wellness plans

• Insurers are large, “A” rated national insurers

Sheffield, Olson & McQueen, Inc. (SOMI) – Involved in health and wellness plan designing– Third party administrator to handle claims resolution– Providing insurance agent coordination, marketing,

and call center

40 Square Key Features• Eligibility similar to FHCW• Education• Wellness • Three levels of benefit plans• Coverage for work-related injuries – additional

cost• Benefits and protections of large group

purchasing• Statewide provider networks• Does not deny coverage – guaranteed offer

Creation of 40 Square: Timeline

• Uniquely difficult state insurance regulations, less competition than WI

• Within last 8 years, passed 4-5 laws• Seven years ago, obtained federal funding for stop loss

and to pay actuarial, legal costs and other administrative costs– Nearly $2 million from $4.48 million

• Cooperative Network passed pilot project legislation in 2007– MN Stat. Chapter 147, Art. 12, Sec. 14

• Approached in-state insurers – Desire was to obtain a fully insured plan with no risk for the

cooperative

Creation of 40 Square: Timeline, cont’d…

• In 2009, insurers approached us• New issue that the structure of a

cooperative combined with out-of state insurer did not fit MN state statutes

• Multiple meetings with the state• Determined additional change in statute

needed– Reluctance from insurance companies

Creation of 40 Square: Timeline, cont’d…

• Federal Health Care signed, March 2010• State legislation signed by Governor, May 2010• Submitted initial application to state, October 2010• Additional information requested from state,

December 2010– Actuarial study completed, October 2011

• Submitted additional information, December 2011– Triggered 60 day timeframe

• Received additional questions from Commerce day after deadline, late February 2012

• Meeting with Commissioner of Commerce next week

40 Square: Ready to go• Plans are designed• Call Center: Statewide enrollment day one of

launch date– Launch date determined following state approval

• Regional “town-hall” informational meetings across state

• Cooperative Network members receive substantial membership discount

• When ready, info will be made available on: www.cooperativenetwork.coop

Another potential future option:Northern Community Health

Cooperative• Based in Duluth• Like Common Ground, created under Federal Health

Care Act• Offer to all of Minnesota and Northern Wisconsin

residents– WI Counties: Douglas, Bayfield, Ashland, Burnett,

Washburn, Sawyer • Loan application submitted to federal Department

Health and Human Services this past Monday

Thank you!Char Vrieze

Cooperative Network

Tel: 651-209-8895

E-mail: Charlene.Vrieze@cooperativenetwork.coop