BISMARK, N.D.–The Credit Union Association of the Dakotas said it will launch a CUAD Health Benefits Trust in January of 2018.
The association said the launch follows 16 months of discussion, research, and educating members on the benefits of a Multiple Employer Health Welfare Arrangement, or MEWA.
What exactly is a MEWA? As the CUAD explained in its announced, “it is a self-funded, multiple employer health benefit plan for affiliated credit union members. The Health Benefits Trust (HBT) was exclusively developed by CUAD to help our credit union members and their employees take control of their insurance benefits and control increasing costs.”
The CUAD reported that of the original 20 North Dakota credit unions that were included in the claim history survey over the past year, 18 saw the long-term benefits and opted to participate. That includes 432 enrolled employees, well above the necessary 385 threshold Blue Cross and Blue Shield needed to secure the Trust, the CUAD said.
“We anticipate that number to grow significantly in year two and three, as has been the case with other association trust plans in the state,” the CUAD said. “Our plan administrator will be Blue Cross Blue Shield of North Dakota, so the benefit claims and notification will be a seamless, cost saving transition for our members and their employees.”
“This is great news for our association and affiliated employees,” stated Jeff Olson, president/CEO of CUAD on the association’s website. “This is the first step in building a lasting foundation and providing a long-term, sustainable value to our members. I appreciate the confidence and support from those credit unions on this initiative,” he concluded.
The CUAD Health Benefits Trust will be supervised by a seven-member board of trustees, assembled from current participating members. The Trust will be regulated by the North Dakota Insurance Department, as well as the Internal Revenue Service and the Department of Labor to ensure appropriate surplus and solvency. The CUAD HBT also maintains stop-loss insurance coverage to provide additional protection to plan participants, according to the CUAD.
The program is launching only in North Dakota, as South Dakota statutes do not allow a Trust to operate in that state. The CUAD noted, however, that President Trump recently signed an executive order allowing “Association Self-Funded” plans to be sold across state lines, which it said “could be a game-changer” in the coming months.