Why a Trust
A Jointly Managed Trust is an organization of employees and employers who work together to purchase healthcare benefits. Trusts are tax exempt and are governed by a Board of Trustees who contract with health providers to design plans to meet the needs of their members. Because a Trust allows many groups to participate in a single health plan, it reduces administrative costs and increases purchasing power. Combined, these result in lower healthcare premiums and high-quality benefits.
Additional trust advantages:
- Trusts such as ours also provide financial security and responsibility with fully funded reserves to avoid an contingent liability, including claim run-outs.
- The trust concept is supported by California Teachers Association (CTA) and California School Employees Association (CSEA).
- A trust offers a unique value in providing security, expertise and accountability in healthcare programs.
- As a self-funded, not-for-profit organization, a trust directs all monies to the maximum benefit of its members and is legally held to the highest standards of fiduciary responsibility.
- CVT spends an average of 98 cents of every premium dollar collected on healthcare for our members.
- CVT has fully-funded reserves that avoid any contingent liability to its members. As one of the state's largest self-funded PPO public schools trust, we have never required school district members or participants to pay additional contributions midyear for health, dental or vision coverage. This is a significant difference compared to JPAs and other healthcare providers that work on a commission basis and put both school districts and participants at a much greater risk, including claim run-outs and financial liabilities.
- CVT is managed by a board of directors with equal representation of management and labor to assure the interests of all parties are considered.