Members Health Network (Members Health), a stand-alone subsidiary of Members United Corporate FCU, has ceased operations as of Monday, April 27, 2009. 

Operating as a completely separate company from the corporate (i.e. own policy, procedures, HR guidelines, etc), Members Health was launched in June 2007 to help credit unions compete more effectively in attracting Health Savings Accounts to their balance sheets.  Unfortunately, many start-up companies fail to attract enough business during their formative periods.  Oftentimes, market conditions change significantly, causing the best business plans to fail.  That was the case for Members Health Network.

In its most recent strategic direction document (February 2009), Members United stated it “will not contribute new capital to Members Health Network but will seek credit union ownership to gain greater involvement of members and attract new capital as needed.” 

Over the past several months, Members Health has attempted to raise additional capital directly from the credit union community to continue operations.  It has been unsuccessful in gaining supporters, which is understandable given the costs surrounding the corporate stabilization plan and the uncertainties of a weakened economy.

This action has no significant financial impact on Members United and in no way affects its ability to serve members.