Montana Health Network Health Insurance

“The Board of Trustees consists of employees of the contributing employers and as such the board members are compensated by the contributing employers for the services they provide as employees of their respective employer. Due to this, they are not considered independent Trustees.”

“The organization is made up of members representing all the employers that purchase health insurance through the trust.”

“Each employer participating in the plan and trust has the right to appoint an individual to the Administrative Committee, which is a non-voting committee. The Administrative Committee appoints a 5 member Executive Committee, which serves as the governing body with voting rights. The Executive Committee meets on a regular basis to make decisions regarding the administration of the trust.”

“Amendments to and termination of the plan and trust are subject to the Administrative Committee's approval.”

“There is no committee with authority to act on behalf of the governing body.”

“A copy of the Form 990 is e-mailed to all members of the Executive Committee (governing body) and a comment period is provided prior to filing.”

“The non-voting members of the Administrative Committee elect the voting governing body, the Executive Committee. The 33 non-voting members are not required to sign the conflict of interest policy. Only the members of the Executive Committee and Plan Administrator are required to annually complete and sign a conflict of interest form to disclose any potential conflicts of interest. Any conflicts are reviewed by the Committee and the Plan Administrator and a decision is made about whether the member with the conflict should be excluded from discussion and/or vote.”

“The organization makes its governing documents and financial statements available to the public upon request.”

“Reasonable Effort to Obtain Compensation: Montana Heatlh Network Health Insurance Plan & Trust sent a questionnaire to the five members of the Board Members requesting compensation and benefits paid by a related organization. The organization was unable to obtain the requested information from all members. For 990 purposes we are required to list our contributing employers as related organizations in the attached Schedule R. Part VII requires that we disclose the compensation from related organizations. Volunteer Exception to reporting compensation: The Board Secretary Greg Drapes is an employee of one of the related taxable participating employer. Montana Health Network Health Insurance Plan & Trust does not directly or indirectly own or control the related taxable employer. Additionally, no managment services are provided by the related taxable employer to Montana Health Network Health Insurance Plan & Trust. Due to this exception, the compensation paid to Greg Drapes, for his services as an employee of the related participating employer is not reportable in Part VII and is correctly excluded.”