Because health care providers offer price discounts and administrative efficiencies to large purchasers in exchange for patient volume, coalitions can purchase health care services for less money than individual funds could on their own and, at the same time, maximize employee choice. Most coalitions are formed by employer groups. While many larger coalitions include unionized companies and public employers, union involvement in coalitions is generally limited. Of the union coalitions that do exist, most are Taft-Hartley funds. The majority of these funds are in construction, retail and the service industry.
Coalitions vary in size and geographic coverage.
For example, the Cooperative Health Network in Ohio covers 14,000 people and includes four health funds while the Health Care Cost Containment Cooperative of the Mid-Atlantic Region covers 350,000 people and includes 55 funds. Most coalitions include 15 to 20 member funds. Funds considering participating in a coalition need to consider a number of design issues. Here are questions and answers that address some of these issues. Roles of coalitions vary.