40 Square Cooperative Solutions is evolving with the times.
The member-owned, member-governed organization is the first of its kind. 40 Square is Minnesota’s only agricultural co-op focusing exclusively on providing farm families, agribusinesses, qualified ag trade associations and cooperatives – and their employees – access to self-funded health plan options. Plan participants are eligible to join 40 Square throughout the year, not just during the open enrollment window in November and December. Interested participants can also receive a free quote within minutes.
“The difference with 40 Square is we can take ownership in our plan,” said former Board Chair Robby Gieseke, who recently stepped off the board after several years as chair. “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.”
In 2022, 40 Square is making a pivot by unveiling a new management structure to continue its outreach efforts throughout Minnesota. This spring, the cooperative has teamed up with Ag Management Solutions, a full-service, nationally recognized organization based in Mankato, which will now assist in overseeing 40 Square’s daily operations.
“AMS has built a reputation in the agricultural industry as an organization that can take groups like ours to the next level,” said 40 Square Chair Cole Trebesch, who succeeded Gieseke earlier this year. “They’re the right fit for us as we look to stay competitive and bring affordable health care to Minnesota farm families and businesses that work within agriculture.”
Concord Management Resources (CMR), another partner that has been working with 40 Square for several years, has taken on additional services to support the Health Plan. CMR has more than 20 years of experience selling and administering Multiple Employer Welfare Arrangement Health Plans like 40 Square. It will continue collaborating with 40 Square by offering sales support; assisting with quoting new business; enrolling new business; renewal management; and servicing enrolled groups.
40 Square was founded in 2009. After years of advocacy, legislation allowed 40 Square to begin offering health plans in 2017. The group is now seeking an Executive Director to lead the organization in 2022 and beyond. Former Executive Director Char Vrieze has departed 40 Square to take on a new role in the cooperative industry. In the interim, AMS CFO Scott Miller will serve as 40 Square’s acting executive director.
“We thank Char for her dedication to 40 Square and wish her all the best,” Trebesch said. “She was instrumental in our growth, and we’re excited to find the right person to fill her shoes.”
Vrieze, whose association with 40 Square dates back to 2009, said the success of 40 Square is built around collaboration and unity.
“This was truly a grassroots team effort with Minnesota’s agricultural community and still is to this day,” she said. “It has sincerely been an honor to work for Minnesota’s hard working farm families and agribusinesses. 40 Square and our members will always be a part of me.”
Interested applicants can find more information about the job posting here.
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,” Vice Chair and Brown County farmer Steve Hoffman said.
During the 2022 Legislative Session, 40 Square has mounted an advocacy campaign to seek policy solutions to make the cooperative model more competitive in the marketplace. In January and March, Trebesch met with Gov. Tim Walz to discuss how the Legislature can support legislation to support 40 Square. AMS will also assist in 40 Square’s advocacy efforts.
“Advocating for public policy isn’t an overnight success, and we’re in this for the long haul to discuss how lawmakers can help rural Minnesotans find affordable health care,” Trebesch said.
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.
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 comprises 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 Romsdhal 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 healthcare 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 health care increases for the following plan year.
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
This year, 40 Square announced that through its partnership with Aetna, the co-op is offering an additional network: The Aetna Premier Care Network Plus (APCN+) – Allina Health Performance Network. This value based network offers strong access, including more than 18,000 providers, 40 hospitals, 29 urgent care centers and 44-minute clinic locations. APCN Plus is 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
In 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,” Trebesch said, “and this move to Aetna has accomplished that goal.”
Membership Criteria
To become a member of 40 Square, farmers, agribusinesses, ag trade associations and cooperatives must meet certain criteria, including (but not limited to):
- Actively work in production agriculture in Minnesota
- Filing 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
- Purchasing Voting Stock in an amount of $100 (one-time, only for the farm/business)
- Having 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.)
- Participating for three years, otherwise risk forfeiting a portion of stock, if applicable (certain exclusions apply)
For members and Minnesota farm families like Trebesches, 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,” Trebesch said. “It’s a co-op to service its members.”
Contact
Are you in interested joining the nearly 1,000 Minnesotans who own their health plans with 40 Square? We’ve got you covered! 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 to receive a free quote.