Health Insurance: A Critical JunctureBenefits Administrator Arlene Ray recently informed denominational health care participants of an insurance change beginning November 2005. New coverage will be supplied by Capital Blue Cross and should give all participants a wide range of options for network doctors and facilities nationwide. While this change ensures coverage for a least another year, it was precipitated by steep rate increases.
Arlene explains that “because of high usage and high claims, our renewal rates were much higher.” In fact, the denomination’s rate went up an unsustainable 55%. In addition, claims exceeded the expected amount so significantly that the denomination “may be left with a claims run-out invoice of close to $140,000.” A contributing factor is that some congregations have chosen to establish their own group plans outside the BIC-sponsored Brotherhood Plan. This alternative coverage is generally available for congregations that have a history of low usage and low claims. This leaves participants with greater needs in the Brotherhood Plan, causing costs to rise as the ratio of claims-to-participants increases. While the increase is more than anyone would like to see, Arlene reports that she and the trustees “felt it was important to offer a health plan at some cost rather than not to offer any health plan.” This is especially true for “pastors who may have difficulty finding individual health care coverage.” At this time the projected rates (see chart below) and ability to offer a health plan after October 2006 are uncertain. “If enrollment differs from our present number of participants by 10% or more next year,” Arlene cautions, “pricing could be changed to reflect the new group.” All participants will be notified of any changes. More critically, if not enough people enroll in the plan, the plan will not be able to be sustained beyond this next year. These have been difficult realities for the plan trustees and Arlene. They have worked arduously to bring together the best plan to meet the needs of those in the plan. However, the high cost of health coverage and high claims have made coverage costs climb in ways that are hard to manage. We hope you will keep this a matter of prayer as the work continues.
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At a time when increasing health costs are being felt by everyone, the Brethren in Christ are facing particular challenges. In an effort to contain costs and continue coverage a decision was made last year to move to a partially self-funded health plan. While it was hoped that this would be a good and lasting change, the realities proved to be quite different. |
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