minnesota health palns

Leading the Way: 40 Square Begins Fifth Open Enrollment Season

40 Square Cooperative Solutions is first in its class.

The organization is proud to be Minnesota’s only agricultural co-op focusing exclusively on providing farm families, agribusinesses, businesses who provide direct support to production agriculture –  and their employees – access to self-funded health plan options. The co-op has geared up for its fifth year of open enrollment, which began Nov. 1 and runs through Dec. 20, 2021 for Jan. 1, 2022 effective dates.

40 Square Executive Director Char Vrieze has been encouraged by the enrollment outcome over the organization’s first four years, which yielded nearly 1,000 individuals. But she credits the grassroots agricultural origin of the enduring strength of Minnesota’s farmers and cooperatives to 40 Square’s success. Minnesota is the nation’s leading cooperative state, supporting more than 600 co-ops, many of which are engaged in production agriculture.

“Like other co-ops that have led the way for strong agriculture communities, 40 Square is helping to preserve the proud traditions of agriculture for generations to come,” Vrieze said.

Structure of Cooperative and Health Plan

The 40 Square Cooperative Solutions co-op sponsors the health plan and is governed by a board of directors elected by members/patrons. Fifty-one percent of governance is members and patrons, 49 percent is investment partners.

“Our board is comprehensive, and we hear all the conversations as a whole and ask questions,” Investor Board Member and Minnesota farmer Therese Romsdahl said. “We have people with financial experience and we have the hands-on farmers and people representing the famers themselves. That’s the unique thing about 40 Square – you have farmers on the board, so we hear all the discussions.”

There are no insurance companies involved. Participant members pay into the co-op to self-fund the health plan. Those premium dollars are then placed into a Trust, only to be used for health plan expenses. The Trust is a separate board governed by the five elected plan members; however, all health plan participants have 100 percent ownership interest in the Trust. If resources are not spent during any given health plan year, the money remains in the Trust and helps stabilize premium increases for the following plan year.

“The difference with 40 Square is we can take ownership in our plan,” 40 Square Chair Robby Gieseke said. “We can provide a comprehensive health plan at a competitive price for my family and our employees. What’s great about 40 Square is we can sculpt the plan that we see benefits us the most.”

Health Plan Details

40 Square offers participants a variety of health plans to choose from, including health savings account (HSA) eligible plans. Similar to traditional health insurance, 40 Square’s self-funded plans have an annual deductible, coinsurance and copays that members are responsible for. The amount of coverage received depends on the plan selected. Additional optional benefits include: vision, dental and life. Other non-insurance products to enhance the health plan include: hearing benefits, free telemedicine doctor visits, care navigators that help explain tests, claims or billing and cost comparisons for procedures. In addition, the co-op offers AgriPlan and BizPlan, which helps farmers and agribusinesses declare medical expenses as a business expense on taxes.

“As a farmer, we are eternal optimists,” 40 Square Board Director Kevin Lauwagie said. “I think we’re certainly a good organization that offers another look at health care, and we’re offering competitive coverage to Minnesota farm families and agriculture businesses.”

New in 2022

40 Square is excited to announce that through its partnership with Aetna, the co-op is offering an additional network this year, The Aetna Premier Care Network Plus (APCN+) – Allina Health Performance Network. This more focused network offers strong access, including more than 18,000 providers, 40 hospitals, 29 urgent care centers and 44-minute clinic locations. The APCN+ will be available to eligible employees who reside in any of the following 13 Minnesota counties:

• Anoka

• Brown

• Carver

• Chisago

• Dakota

• Hennepin

• Isanti

• Nicollet

• Ramsey

• Rice

• Scott

• Washington

• Wright

Effective Jan. 1, 2021, 40 Square changed its health plan administrator to Aetna, a nationally renowned carrier. The transition to Aetna has provided 40 Square access to Aetna’s cost-effective, broad statewide and national network with a goal toward long-term savings for its members, along with improved customer service and enhanced telemedicine services.

“40 Square is constantly aiming to improve our member benefits while adding value to our members, and this move to Aetna has accomplished that goal,” Gieseke said.

Membership Criteria

To become a member of 40 Square, farmers, agribusinesses and ag trade associations must meet certain criteria:

  • Actively work in production agriculture in Minnesota
  • File either Form 1065 or Schedule F with their income tax return or provide direct services to production agriculture in Minnesota. This includes farm corporations and businesses that predominately receive their income from providing their services to production agriculture
  • Purchase Voting Stock in an amount of $100 (one-time, only for the farm/business)
  • Purchase Common Stock of $1,000 over the first year (one-time, only for the farm/business/employer)
  • Have a minimum of one “Common Law” employee. (In general, someone who you provide a W-2 does not have to be a full-time employee; for example, it may be a spouse who does the books.)
  • Participate for three years, otherwise risk forfeiting a portion of stock (certain exclusions apply)

Additionally, 40 Square now proudly offers the state’s agricultural trade associations (ATA) and cooperatives the ability to join 40 Square. As a result of becoming an ATA/co-op member of 40 Square, trade associations and cooperatives are able to provide their members – should they meet the qualifications – the ability to join 40 Square with no stock investment cost.

For members and Minnesota farmers like Cole Trebesch, the 40 Square difference means joining an organization that has the best interests of its members at heart.

“I like 40 Square because it’s nice not having an insurance company that’s trying to make a bunch of money,” said Trebesch, who serves as 40 Square vice chair. “It’s a co-op to service its members.”

Contact

Interested in joining the nearly 1,000 Minnesotans who own their health plans with 40 Square? 40 Square could be the missing piece to solve your health care puzzle. Visit www.40Square.coop to learn more about its health plans, doctor network and more, or contact info@40Square.coop or 844-205-9579.