State Rep. Jim Knoblach, R-St. Cloud, recently unveiled a proposal that would increase health insurance options for employers across Minnesota. Knoblach was joined by representatives from the Minnesota Service Cooperatives. The legislation would permit the Minnesota Services Cooperatives, non-profit regional purchasing coalitions that operate insurance pools for units of local government across the state, to offer their medical insurance programs to entities in the private sector. The service cooperatives have enabled school districts, cities and counties to negotiate insurance premiums collaboratively, offering greater health care options at substantial savings. “The current lack of options and the high costs of insurance have made it difficult for many employers to obtain quality health care coverage for their employees,” Knoblach said. “This proposal will increase competition and choice in health insurance, particularly for small businesses and organizations like non-profits that find it hard to get affordable health insurance.” The Minnesota Service cooperatives have been a leader in providing Voluntary Employee Beneficiary Associations (VEBA) and health savings account-type plans to local governments. The Knoblach proposal will greatly expand the availablity of these plans to for-profit and nonprofit organizations, an option many employees could find attractive with the passage of the new federal Medicare law. VEBA plans offered by Minnesota Service Cooperatives cost 30 percent less than typical health insurance last year and had premium increases in the single digits. “This bill is about offering consumers more choices,” said Rob Cavanna of the Minnesota Service Cooperatives. “We are confident that we can deliver our high-quality medical insurance plans to consumers at a lower cost while increasing their range of health care options.” The Minnesota Service Cooperatives employ approximately 300 employees statewide. Currently 267 school districts with approximately 150,000 covered employees and dependents participate in seven Service Cooperative pools.
