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Insurance:
Top Ten Reasons to Choose the Minnesota Service Cooperative's Advantage VEBA
Numerous Voluntary Employer Beneficiary Association Trusts (VEBA's) have been introduced since the Service Cooperatives established a VEBA for their member groups in 2002. The Washington Post reported on September 9, 2004 that "Aetna said employer interest (in consumer-driven plans) is rising rapidly, noting that a survey of its employer-customers found that medical costs for those with consumer-driven plans rose only 3.7 percent last year, compared with an 11 percent rise for employers using more conventional plans."* With more and more companies offering "freestanding" VEBA's, there is a need to know what makes the Minnesota Service Cooperative's Advantage VEBA the best choice for your organization.
Below you will find our "top ten" list of reasons why the Minnesota Service Cooperative's Advantage VEBA is the best choice for service cooperative members.
- Service cooperatives filed and paid for the Multi employer trust.
The VEBA trust documents have been properly filed and paid for and will be maintained by the Minnesota Service Cooperatives. (Individual employers may expect to pay an average of $5,000 to $10,000 to file trust documents and continuing legal and administrative expense will be incurred annually.)
- Automatic crossover is a great convenience (paperless transactions.)
The Minnesota Service Cooperative's VEBA can be set up to automatically coordinate with MII flex plans and corresponding Blue Cross health plans.
- Individual VEBA savings accounts are portable (accounts follow the employee.)
Minnesota Services Cooperative VEBA trust accounts are portable, so if an employee changes jobs or their employer changes health plans, all funds in the individual trust account remain with the employee.
- Competitive Pricing.
The administrative fees to coordinate the VEBA trust accounts and flex plans are among the most competitive (if not the most competitive) in the marketplace.
- All BCBS provider discounts are passed to employees and family members.
Combining the Minnesota Service Cooperative's VEBA trust and specified health plans ensures employees and family members that they will receive the full benefit of the health plan discounts negotiated by Blue Cross Blue Shield of Minnesota.
- Future VEBA administrative tasks are assumed by the Minnesota Service Cooperatives.
The Minnesota Service Cooperatives have assumed the tasks of managing the ever-changing administrative responsibilities required by the Federal and State statutes and regulations.
- Sample bargaining agreements and personnel policies are available.
The Service Cooperatives make available sample collective bargaining agreements and personnel policies that meet the VEBA trust guidelines.
- Over 75 political subdivisions and 4,000 employees currently participate in the Minnesota Service Cooperatives Advantage VEBA.
Current Trends: the future in health insurance = consumer directed health plans.
- Trust and plan rules were designed to ensure equal compensation for all employees.
Trust and plan documents specifically protect against unfair compensation within an organization.
- Retiree and active employee VEBA accounts are integrated upon retirement.
No need to begin a new VEBA or HSA—the work has been done for you!