Putting Health Insurance on the Menu: Print Preview
- Some credit unions share fears about new health care law.
- Private exchange targets CUs for more coverage access.
- Colorado CU sees CUSO alliance as an opportunity to compete.
When the tiny Saguache County Credit Union, plagued by losses for several years, was finally liquidated last spring, its 3,185 members faced not having another financial institution in the area to serve them.
Regarding the revenue split between CUEB and the credit union, Benson said there are two approaches. Through the licensed agreement approach, credit unions work directly with CUEB with a direct revenue share. With the non-licensed approach, meaning if the credit union or CUSO is not licensed to offer insurance, it can’t share in revenue. In this case, Benson said CUEB will pay the credit union a member access fee. Regardless of the approach, they get a new stream of revenue, he added.
EPL has been engaged with more than 100 credit unions and a number of them are discussing possible partnerships with CUEB, Benson said. He anticipates having 25 charter credit union members for the private exchange by the end of the year. Still, he acknowledged, there is some skepticism about the new entity.