Lowest Insurance Rate Increase in Years!

Group Insurance News Update:  Health Insurance RFP / Life Insurance RFP / Workers' Compensation Insurance Informational Meeting / HIPAA / Voluntary Employees’ Beneficiary Association (VEBA) - Do you have questions?

This past year has been one full of activity, new products, and education.  Below you will find quick information relating to health insurance pooling, life insurance, worker’s compensation insurance, HIPAA compliance, and the Service Cooperative’s VEBA plan.

Health Insurance RFP

South Central Service Cooperative, in accordance with our joint powers agreements with the school health insurance pool members, has recently completed the request for proposal (RFP) process.  SCSC received proposals from several health insurance providers and after meetings with the insurance executive committee and full insurance committee they produced a recommendation to remain with the current provider - Blue Cross Blue Shield.   The SCSC board approved the recommendation at their April 7, 2004 regular meeting.  We are pleased to report that the school health insurance pool has received its lowest rate increase (single digit) in several years.

The City, County and other Governmental Agency’s (CCOGA) request for proposal will be completed in 2005.

Life Insurance RFP

South Central Service Cooperative just completed a life insurance RFP.  The insurance advisory committee members recommended continued life insurance coverage with MII Life.  The SCSC board approved the recommendation at their April 7, 2004 regular meeting.

Workers’ Compensation Insurance Informational Meeting

South Central Service Cooperative will be hosting an informational meeting for current enrollees in the workers’ compensation retro program.  The meeting is scheduled for May 3, 2004 at 10:00 a.m. at the Mankato Intergovernmental Building.  For further information and registration, please visit our website at www.mnscsc.org and click on “events.”

SCSC partners with the Minnesota School Boards Association to offer a Workers’ Compensation Retro Program underwritten by Berkley Risk Administrators. (In 1972, the MSBA established an insurance trust (MSBAIT) as a nonprofit vehicle to provide insurance programs.)  The Retro Program offers economical employee coverage with competitive pricing on the front-end and the possibility of financial return to your group on the back-end.

HIPAA

Like many organizations, you may be experiencing “HIPAA stress syndrome.” Compliance can be a difficult and time-consuming task—but it doesn’t have to be!   SCSC has partnered with Agent 77, a leading HIPAA compliance firm, to assist you with your compliance needs.  

All clients with health plans must comply with HIPAA (The Health Insurance Portability and Accountability Act of 1996), by April 14, 2004.  HIPAA is a complex set of federal regulations governing medical privacy that requires significant documentation in order to comply. Every one of your plans will almost surely have some HIPAA responsibilities, regardless of whether they are self-funded or fully insured with an insurance carrier or HMO.

Although South Central Service Cooperative has sent out HIPAA compliant business associate agreements as a courtesy to our members, each entity will need to be compliant within their own organization too. A cost effective way to do this is through Agent 77 – you can find more information about their service on their website ww.agent77.com or via direct to Gordon Kuntz (President of Agent 77) at: gkuntz@agent77.com   The SCSC members who have utilized the Agent 77 toolkit have been very pleased with the ease and related costs. Several school districts throughout Minnesota have also used the Agent 77 toolkit and have found it to be an easy and inexpensive method to reach compliancy. 

Voluntary Employees’ Beneficiary Association (VEBA) - Do you have questions?

The Minnesota Service Cooperatives VEBA plan has received an incredible amount of interest this past year.  As of 2003-04, nine percent of South Central Service Cooperative’s school pool members were VEBA participants.  (We expect that number to increase substantially during this next insurance renewal period.)  The results are in – the theory works and members are enjoying the benefits of greater control of their group’s insurance rates and overall utilization. 

South Central Service Cooperative has held many informational meetings about the Service Cooperative’s VEBA plan.  If you were not able to attend the meetings, have more questions, or want to learn more about the VEBA, here are some options for you:

• During your upcoming renewal meetings you will, once again, be able to learn even more about this consumer directed health plan alternative. 
• SCSC will be happy to coordinate on-site informational meetings for your organization and staff.
• Visit our website at:  www.mnscsc.org and click on “insurance” to download informational documents.
• Call, or email Wanda Sommers Nielsen at 507.389.1076 or wkn@frontiernet.net to discuss how a VEBA can work for you.

The VEBA is a “win-win” product.  Let South Central Service Cooperative help you in your quest to provide a product that:

1. Allows tax deductible contributions that accumulate and compound tax free.
2. Allows distribution at any age without penalties, regardless of the amount.
3. Provides income and estate tax-free survivor benefits.
4. Provides incentives to become more informed health insurance consumers.

Call us today, and let the VEBA plan work for you.