Affordable Health Insurance for Nonprofits: BenefitsMN

Not-for-profit organizations face the daily challenge of how to best accomplish their mission with the limited resources available at their disposal. With one eye looking at programming, the other is looking at the budget. The Minnesota Council of Nonprofits, whose vision that “nonprofit organizations accomplish their missions for a healthy, cooperative, and just society,” has developed a budget-friendly product for not-for-profits that achieves this vision.

Launched in 2020, BenefitsMN is an association health plan. Three years in the making, the Minnesota Council of Nonprofits partnered with Medica and Gallagher to develop a health insurance alternative that could benefit Minnesota nonprofits by leveraging economies of scale to reduce costs without compromising the quality of care.

For many years, members have asked the Minnesota Council of Nonprofits to consider providing a health insurance alternative. Now that BenefitsMN is here, the response has been robust. As of February 1, 2021, 68 member organizations have joined the plan, with 500 enrolled employees and a combined 830 total insured. Organizations are able to join at any time.

Nonprofit Health Plan Enrollment

Just a little over a year in existence, the plan appears to be working as envisioned. According to the Minnesota Council of Nonprofits, 82 percent of participating organizations did not see cost increases for 2021. For not-for-profit organizations operating on a tight budget, this brought welcomed news. The Minnesota Council of Nonprofits continues to work on the plan to make it more attractive to organizations, including expanding the plan’s network and services offered as well as creating a rate cap per tier.

Gallagher is the Minnesota Council of Nonprofits’ benefits “Cost Savings” Partner and has been since 1989. They are also the exclusive and endorsed broker to BenefitsMN. Jack Duffy, Area Vice President for Gallagher, offered some additional statistics through February 1, 2021, that illuminate the success of the plan to date. These include:

• • 29 of the 68 member organizations in BenefitsMN hadn’t offered group health coverage to their employees in the most recent calendar year prior to joining BenefitsMN.
  • 44 of the 68 member organizations in BenefitsMN are in Tier 1-4, which is almost certainly more affordable relative to other group health coverage available to them in Small Group.

Medica is the health insurance provider of BenefitsMN. There are five plan options and six networks available, which were selected based on Minnesota Council of Nonprofits member surveys plus benchmarking surveys conducted by Gallagher. Not-for-profits are able to use all 30 offerings or may select plan options and networks that work best for their needs.

In order to participate in BenefitsMN, a not-for-profit organization must be a member of the Minnesota Council of Nonprofits for 30 days.  In addition, organizations must have two eligible employees to participate.

If interested in learning more about this health plan alternative for nonprofits and how it can help your organization, information can be requested via Gallagher’s website and a representative can assist you. 

Request information here:  BenefitsMN | Gallagher USA

For additional considerations please reach out to Marc Kotsanas, CPA or contact our Not-for-Profit Group at Mahoney.