From our President and CEO
Returning to a Traditional Network for a Better Experience
in sight, I want to use my column to address an issue that has been top of mind for many of our member banks that participate in the MBA VEBA insurance program: returning to a traditional PPO network.
In 1976, the MBA VEBA Trust was developed as a self-insured program to reduce insurance costs for banks while increasing the quality of service. Over the course of 2018 and 2019, radically inflating health care costs resulted in claims costs that eroded the financial condition of the VEBA.
In order to maintain the viability of the Trust, the MBA VEBA Trustees made the difficult decision in 2020 to move from a
traditional PPO network to a new pricing model called Reference Based Pricing. Te promise of Referenced Based Pricing was strong. Te Trust could significantly reduce costs while removing many of the classic headaches for members when dealing with a health care network. Unfortunately, the old saying “if it’s too good to be true, it’s not true” was correct. Although the VEBA did see cost savings in alignment with projections, the service experience for our members deteriorated in ways that were simply unacceptable.
I want to be clear: the VEBA Board of Trustees, the staff of MBA VEBA and I offer our sincere apologies for any headaches the transition to Reference Based Pricing may have created for you or your
staff. We have officially ended our relationship with the vendor providing Referenced Based Pricing services, and, as of Jan. 1, 2022, will return to a traditional PPO network through Anthem Blue Cross Blue Shield.
Te Anthem network provides 99% coverage of medical practitioners and facilities for our membership and offers much better rates than previous health care networks used by VEBA. It also is worth noting that none of our medical plan features are changing. Deductibles, co-pays and benefits will remain the same within each plan. Tis will return VEBA to a more familiar insurance structure that will allow our members to confidently receive the health care they need.
Max Cook, President and CEO Missouri Bankers Association
Most importantly, you will still have the same VEBA team to call upon with questions. Lesley Weaver, Joyce Kennedy, Danielle Backes, Laura Gasho and Bethany Green have worked tirelessly throughout the past year to help members navigate Reference Based Pricing, and they remain firmly committed to delivering a better insurance experience for VEBA members in 2022.
THE MISSOURI BANKER 5
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