As a member-owned cooperative, The Alliance
� exists to increase the value of health care benefits provided to our members' employees and their families. We are not only owned, but also directed by our members in the form of a member-led board of directors. The Alliance Board of Directors provides oversight and management to ensure the future strength of the cooperative.
Recently, The Alliance Board of Directors approved a price change for our Alliance Standard Equity members for FY 2013, which began on June 1, 2012.
Retainage Rate Reduced Retainage is the share of claims savings that is "retained" by The Alliance to be used for operating expenses. Beginning this fiscal year, retainage rates dropped for members:
- From 4.3 to 3.9 percent for those members that have been with the cooperative for less than four years as of June 1, 2012.
- From 3.3 to 3.1 percent for those who have been with the cooperative for more than four years.
Annual Retainage CapThe Alliance caps the amount of retainage members pay in a year. This is designed to put a limit on the amount of retainage owed should the member have inordinately high claims costs. Once a member hits the cap, they do not owe any additional retainage.
The Alliance Board of Directors approved an increase on the retainage cap for all standard equity members from $12.75 to $13.90 per employee per month. In the case that a member would meet this cap, they would have no further retainage applied until the new fiscal year begins.
If you have a mutual client with The Alliance you received information about this price change and the employers affected in June. If you have any questions, please
contact me, 800.223.4139 x 6645.