Viability
sustained VEBA during difficult times, and it serves that purpose again as VEBA undergoes changes.
Every few years, VEBA has experienced a large variance in the number and size of claims. However, for the last two years, the trust has experienced an unprecedented number of large claims, paying 69 claims that exceeded $9 million — that’s a 28% increase in inpatient facility costs. VEBA has never experienced this amount of stress to its risk-based capital throughout its long history.
To ensure the ongoing viability of the VEBA program, the VEBA Board of Trustees approved moving all banks participating in the VEBA Trust medical plan
to a new alternative claims payment system, offered last fall, called ELAP. Tis is a system that many insurance programs are now using. Tis change is effective April 1.
ELAP uses this alternative claims payment system that offers significant claims savings. More important, however, is that this change does not affect your employees’ medical benefits or plans. Tey can seek treatment from a provider of their choosing — no more questioning if the physician is an in-network or out-of- network provider. Te move to ELAP is only changing the way in which claims are paid. I encourage you to read the article on Page 12 from Steve Wright, MBA VEBA senior vice president, that explains ELAP more in-depth.
On a personal note, the Bank of St. Elizabeth is a long-standing customer of MBA VEBA. I have always appreciated the expertise of the VEBA staff and our discussions on employee health benefits. Tis move to ELAP is necessary to ensure the long-term stability of the trust. As a long-time customer of MBA VEBA, I know the trustees have our best interests in mind with all their decisions. Te trust’s latest decision demonstrated this, and I strongly believe this move by VEBA will preserve the trust and its commitment to ensure exceptional medical coverage, with a cost savings, for its members, both now and in the future.
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