1. Minnesota Cooperative Solutions for Health Care Dairy Directors’ Leadership Conference April 4, 2012 Char Vrieze Cooperative Network

2. 40 Square Cooperative Solutions

3. 40 Square Formation Process Like FHCW, this project is being led by Cooperative Network Determined coverage the market wanted and needed  Professional telephone survey done of more than 4,000 producers  Current insurance offerings in Minnesota were analyzed Hired staff  Small team supplemented by cooperative members

4. Cooperative Purpose The cooperative is organized to: a)Form a cooperative specific to health care issues b)Educate members on health care – providing accurate information c)Provide wellness information and wellness plans – help individuals make healthier decisions d)Provide additional health coverage options  Competition in the marketplace  Creating a pool of actuarial data to prove farmers not as risky as perceived  Dedicated to serving farmers and agribusiness with quality coverage

5. 40 Square Partners United Farmers Cooperative (UFC) AgStar Financial Services (AgStar) Have been consistent, lead partners throughout Lead partners in plan designs

6. 40 Square Partners Key Benefit Administrators (KBA) –Contract agreements with insurers in developing and designing health and wellness plans Insurers are large, “A” rated national insurers Sheffield, Olson & McQueen, Inc. (SOMI) –Involved in health and wellness plan designing –Third party administrator to handle claims resolution –Providing insurance agent coordination, marketing, and call center

7. 40 Square Key Features Eligibility similar to FHCW Education Wellness Three levels of benefit plans Coverage for work-related injuries – additional cost Benefits and protections of large group purchasing Statewide provider networks Does not deny coverage – guaranteed offer

8. Name this Movie

11. Creation of 40 Square: Timeline Uniquely difficult state insurance regulations, less competition than WI Within last 8 years, passed 4-5 laws Seven years ago, obtained federal funding for stop loss and to pay actuarial, legal costs and other administrative costs –Nearly $2 million from $4.48 million Cooperative Network passed pilot project legislation in 2007 –MN Stat. Chapter 147, Art. 12, Sec. 14 Approached in-state insurers –Desire was to obtain a fully insured plan with no risk for the cooperative

12. Creation of 40 Square: Timeline, cont’d… In 2009, insurers approached us New issue that the structure of a cooperative combined with out-of state insurer did not fit MN state statutes Multiple meetings with the state Determined additional change in statute needed –Reluctance from insurance companies

13. Creation of 40 Square: Timeline, cont’d… Federal Health Care signed, March 2010 State legislation signed by Governor, May 2010 Submitted initial application to state, October 2010 Additional information requested from state, December 2010 –Actuarial study completed, October 2011 Submitted additional information, December 2011 –Triggered 60 day timeframe Received additional questions from Commerce day after deadline, late February 2012 Meeting with Commissioner of Commerce next week

14. 40 Square: Ready to go Plans are designed Call Center: Statewide enrollment day one of launch date –Launch date determined following state approval Regional “town-hall” informational meetings across state Cooperative Network members receive substantial membership discount When ready, info will be made available on: www.cooperativenetwork.coop

15. Another potential future option: Northern Community Health Cooperative Based in Duluth Like Common Ground, created under Federal Health Care Act Offer to all of Minnesota and Northern Wisconsin residents –WI Counties: Douglas, Bayfield, Ashland, Burnett, Washburn, Sawyer Loan application submitted to federal Department Health and Human Services this past Monday

16. Thank you! Char Vrieze Cooperative Network Tel: 651-209-8895 E-mail: Charlene.Vrieze@cooperativenetwork.coop