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Press Release
Medica Supports Local Nebraska Communities In This Time of Need
May 26, 2020
Omaha, NE — Medica, a non-profit health insurer, today announced an innovative program designed to support local residents and economies throughout Nebraska by depositing millions of dollars into local community banks.
Medica's President and Chief Executive Officer, John Naylor, stated: "As a non-profit health plan, Medica has an obligation to place its reserves in credible financial institutions to ensure that we can meet the health insurance needs of our members. At the same time, we are always looking for innovative ways to invest in the communities we serve and we believe this is another way we demonstrate why Nebraskans place their trust in us."
Under this program, Medica will deposit $15 million of its reserves in local community banks throughout the state. Medica will be supported in this effort by Nebraska Independent Community Bankers. Medica anticipates about 60 banks will participate in the initial rollout of this program. The money deposited by Medica will be used, in turn, to invest in local economies through loans by the participating banks to businesses and individuals in the communities they serve. Medica will select participating banks based on the local economic needs of each community.
"We recognize that there are Nebraskans throughout the state that have significant financial needs," said Patrick Bourne, Medica Market Leader for Nebraska. "Many of them turn to their local community bank for loans in these times of need. By banking locally, Medica is giving community banks more resources to support families and small businesses in our communities."
Said NICB President and CEO J. Eric Hallman: "Community banks are conduits to promote the economic success of towns and cities across Nebraska. At a time when gathering deposits is one of community banks' top priorities, Medica is choosing to bank locally. We are thrilled to partner with a respected company like Medica to launch this novel program. We hope other companies will choose to follow Medica's lead."
About Community Banks
Community banks channel their loans to the neighborhoods where their depositors live and work, which helps local businesses and communities thrive. According to the Federal Reserve's "Small Business Credit Survey: Report on Employer Firms," community banks are the small business lender of choice. Community banks comprise 99 percent of all banks, provide more than 60 percent of all small business loans and make more than 80 percent of agricultural loans. Moreover, community bank officers are typically deeply involved in their local communities.
About Nebraska Independent Community Bankers
Nebraska Independent Community Bankers (NICB) is the only financial trade association in the state exclusively devoted to Nebraska's community bank business model. NICB is comprised of Nebraska banks who steadfastly believe in the unique community bank business model, the importance of relationships with their customers and local organizations and an intimate understanding of their respective communities and marketplace. NICB is committed to seeing that our business model is maintained to ensure the long-term viability of Nebraska's economic and cultural fabric. For more information, call 402-474-4662 or email [email protected].
More About Medica
Medica is a non-profit health plan headquartered in Minnesota. The company serves communities in the heart of America by providing health care coverage and related services in the employer, individual, Medicaid and Medicare markets. It operates in Minnesota, Iowa, Kansas, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota and Wisconsin.
Medica's vision is to be trusted in the community for our unwavering commitment to high quality, affordable health care. Medica's annual report, which includes the organization's community involvement activities, is available online.
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Media contact:
Medica
Greg Bury
952-992-8437
[email protected]