Council of Independent Colleges in Virginia Benefits Consortium, Inc.

The Council of Independent Colleges in Virginia Benefits Consortium is a 501(c) (9) employee welfare benefit plan within the meaning of ERISA and constitutes a benefits consortium under Section 23-4.2:1 of the Code of Virginia.  Thirteen private colleges, each a member in good standing of the Council of Independent Colleges in Virginia, Inc., elected to become members of the Consortium for its first five plan years beginning January 1st, 2010. 

 

 

Bluefield College Emory & Henry College Hampden-Sydney College Lynchburg College Randolph-Macon College Sweet Briar College

Bridgewater College Ferrum College Hollins University Mary Baldwin College Roanoke College Virginia Intermont College Virginia Union University

 

The Consortium covers approximately 3000 employees with medical, dental, vision and prescription drug plans.  The number of covered employees by college ranges from 80 to over 400.

 

The Consortium is governed by a 13 member Board of Directors.  The President of each member college selects an officer to serve on the Board.  In addition, the President of the Council of Independent Colleges in Virginia is the 13th Board member.  All governing authority rests with the Board.

 

The Board has hired a benefits consultant (KSPH, LLC), a claims administrator (Anthem Health Plans of Virginia, Inc.) and other vendors to provide administrative, consultative and legal services.

 

The Consortium has developed 11 employee health plan designs for use by its member colleges (seven PPO, four HMO).  Each college may elect to offer up to three plan designs to its eligible employees.  Member colleges may offer up to five tiers of coverage: Ee only, Ee plus child, Ee plus children, Ee plus spouse, and Ee plus family. 

 

The Consortium operates on a self-insured basis. Contribution levels are set recognizing claims experience, demographics and industry experience at each individual member college. The Board of Directors is responsible for approving contribution rates by a majority vote. The Board also has the authority to make and collect special assessments. 

 

Contribution rates are developed by the benefits consultant and approved by an actuarial services firm on a prospective experience rated basis. The contribution rates for each college represent a blend of individual college claims experience and overall Consortium claims experience, subject to pooling and excess risk insurance.

 

The Consortium has the authority to purchase stop-loss reinsurance coverage to manage its risk.  It has both individual and aggregate stop-loss coverages in place. Large claims up to the stop loss attachment point are pooled amongst the colleges.

 

Colleges are free to require covered employees to contribute to the cost of coverage. The Consortium does not prescribe employee contribution levels.  Any such employee contributions are collected by the college via payroll deduction. Terminated employees may continue their coverage under COBRA.  COBRA contributions are collected for the Consortium by a third party administrator. 

 

The Consortium ended its first year of operation with net assets in excess of benefit obligations. The Consortium’s independent auditor is Brown, Edwards & Company, L.L.P.