WARRENVILLE, Ill. -
“Our goal is to help credit unions capture their share of this growing market with a partner they can trust–one that is dedicated to serving credit unions, and one that is operated by an entity they already own: their corporate credit union,” said Joseph Herbst, CEO of Members United Corporate FCU.
At present, Members Health Network is working with several credit unions throughout the country as beta-clients. It is hoped that a full release of its platform, HealthBanker, will take place in time for credit unions and their business members to prepare for the 2008 open-enrollment benefits season.
“The development and launch of Members Health Network was a direct outcome of Members United’s Innovation Team,” Herbst said. “They thoroughly researched HSAs and their vast potential for credit unions and their members.”
Peter Barnard, CEO of the new CUSO, said it’s rare to see such a “win-win situation.”
“Credit unions get an entirely new deposit stream and an expanded member base,” he explained. “Members benefit from power tax incentives and more control over their healthcare.
People won’t accept a piecemeal approach,” Barnard continued. “They need to feel like the ‘consumer’ in consumer-related healthcare. That’s the beauty of this opportunity for credit unions. Our industry has always been known for superior member service. With this intersection of healthcare and banking, we have the chance to strengthen that reputation and give credit unions a wing-to-wing solution that positions them to be real competitors in the health-banking marketplace.”
Genesis of Idea
Barnard said the idea began from a strategic look the credit union took to see if credit unions had a logical fit in the health industry.
“We came to a conclusion there is a unique role for credit unions,” he said–providing tools and research, a job for which credit unions are perfect, he said. “What’s been a surprise to us is that credit unions can really potentially have a significant impact in this field, not just be a player. As credit unions focus on service first, it was a surprise to us that credit unions could be a driver in this industry.”
Barnard said that regarding the five credit unions in beta-testing are “going exceptionally well.”
“As a corporate credit union we are touching more lives than any other corporate credit union out there,” he said. “The support and interest level is above and beyond. Credit unions are literally calling in on a daily basis.”
But Barnard said this support does not come as a shock to him.
“I’m not surprised by it,” he said. “I’m grateful for it.”
Members Health Network LLC is the credit union’s second wholly owned CUSO; the first one was Balance Sheet Solutions LLC, an SEC-registered broker-dealer and investment-adviser.
