SALT LAKE CITY-Scott Simpson sees the CU business model and philosophy meshing well with the new health insurance exchanges that are being created.
Simpson, president and CEO of the Utah CU Association, told Credit Union Journal that a private health insurance exchange asked him to be part of its board of directors.
"We have been approached by a group here in Utah that is forming an exchange," said Simpson. "They asked me to give them some guidance in helping them form a cooperative business model. I am considering it, but I have not made my decision yet."
Since Simpson has not discussed any details with the group forming the exchange, he does not know whether it will be an exchange that could be delivered through credit unions, as is the case with the exchange formed by Birmingham, Ala.-based EPL (see related story). "I doubt they are limiting themselves to the credit union community," offered Simpson, who sees why the group is reaching out to credit unions for guidance.
"It is interesting. It seems they have sort of a cultural alignment with credit unions," said Simpson, who believes the government is encouraging exchanges to be formed as cooperatives. "There seems to be a cultural alignment with this group's objectives and what credit unions have accomplished over the last 100 years. Just as credit unions have kept the financial services market in balance, the objective with health insurance exchanges is to place some sort of governor on the throttle of healthcare costs."
Creating Scale
Overall, Simpson thinks health insurance exchanges can benefit credit unions, if not simply as another healthcare option for employees. "From a trade association perspective, we look every day for opportunities for credit unions to create scale and save on expenses so they can better deliver services to members. I think health insurance exchanges are good things."
The league has also formed the Utah Credit Union Voluntary Health Insurance Purchasing Association that serves 20 credit unions in the state. The organization aggregates insurable lives for the participating CUs, creating a larger risk pool and saving money through limiting premium increases. This year, Simpson said, the purchasing association will lower credit union healthcare premiums over last year's levels.
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