In recognition of the financial strain that area employers are experiencing as a result of the COVID-19 outbreak, Group Health Cooperative of Eau Claire has decided to reduce health insurance premiums for its member groups by 50% for the month of April.
“We recognize the strain our member groups are under. We want to help them,” said Peter Farrow, CEO and General Manager of Group Health. “As a cooperative, our reserves are held for the benefit of our members. In consultation with our Board of Directors, we decided a temporary premium reduction is an appropriate action at this time.
“We are not a typical insurance company – we are a cooperative. This means we are a member-governed organization. Member stability and health are our most important areas of focus. We care deeply about the communities we serve,” he said.
In addition to private companies, Farrow said several municipalities and non-profit organizations will also benefit from this reduction. For example, the City of Eau Claire will experience a savings of just over $600,000.
Farrow thanked the cooperative’s Board of Directors for acting quickly and decisively in response to the public health crisis. He added that the board did not yet know if health care costs were going to go up, or down, as a result of the outbreak, and that the decision was made more because of the need to provide relief to groups in the cooperative.
On Mar. 20, Mark Afable, Wisconsin’s Commissioner of Insurance issued a bulletin to insurers advising them that, during this public health emergency, they were encouraged to find ways to help Wisconsin residents through this economic hardship.
“I applaud Commissioner Afable for his forward thinking approach in this crisis,” Farrow said. “The economic impact of this outbreak is far reaching, and we need to address it in ways that provide immediate relief. That, in combination with the solid financial standing of the cooperative, is why we made the decision we did.”
Full disclosure: Andrew Fefer, a social media and video production specialist at Group Health of Eau Claire, is also a member of the CVPost board of directors.