BEAVERTON, Ore.–A group of nine credit unions that came together to take control of their healthcare costs is reporting it has returned more than $1 million in unused premiums to its members.
According to the CU Healthcare Coalition, the newest savings marks the second consecutive year the coalition has returned such a similar-size sum of money to its member credit unions.
“One of the highest fixed costs in healthcare plans is the premium paid for protection against large claims, which employers typically pay to insurance companies regardless of how much healthcare is used by employees,” the organization said.
The CU Healthcare Coalition, created by CU Benefits Alliance CUSO, said it “deconstructed the traditional plan structure,” allowing for the return of unused premiums to its members.
"Returning unused premiums to our members is a win-win situation," said CEO John Harris. "Our members can enjoy lower upfront costs while also receiving a portion of their premium back at the end of the year. It's a double whammy."
Organization Continues to Grow
The CU Healthcare Coalition was formed in 2020 and reports it continues to grow. It said its credit union-exclusive coalition's unique approach to healthcare is producing significant cost savings for its members “without compromising on the quality of the benefits plans it offers its employees. In many cases, credit unions are reallocating their savings into more expansive employee benefit offerings.”
"We're thrilled to be able to offer our employees a healthcare plan that is both affordable and flexible," said Tim Smith, CFO at Workers Credit Union, which is a CU Coalition member. "We believe in lowering healthcare expenses for our valuable employees and their families while also improving the quality of their health plan, and the CU Healthcare Coalition makes that possible."
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