wfn.org | Managed Care Expanding for ELCA Board of Pensions

[Brenda Williams <BRENDAW@elca.org>]

Reply-To: ElcaNews <ELCANEWS@ELCASCO.ELCA.ORG>
ELCA NEWS SERVICE

November 21, 1998

MANAGED CARE EXPANDING FOR ELCA BOARD OF PENSIONS
98-41-233-RK

     MINNEAPOLIS (ELCA) --  To contain costs, trustees of the Evangelical
Lutheran Church in America (ELCA) Board of Pensions voted to "continue to
maintain a single national health plan" while expanding its managed care
programs nationwide.  Such programs would include point-of-service networks
and preferred provider organization networks.
     The Board said it expects that more than 90 percent of non-retired
plan members will be in managed care by 2000.  Currently, 55 percent of
plan members are in managed care, with the remaining portion of members in
a traditional indemnity program.
     The number of plan members in managed care will climb to nearly 70
percent in 1999, when BlueCross and BlueShield Preferred Provider
Organization benefits go into effect in Iowa, Minnesota, North Dakota and
Wisconsin (except in the Milwaukee, Minneapolis and St. Paul areas).
     The trustees, who met here Nov. 6-8 for their quarterly session, also
voted to assess member satisfaction within existing Aetna U.S. Healthcare's
point-of-service networks and to create "alternative solutions for problem
networks."  This resolution also pledged to "manage the cost of the program
more aggressively," following the announcement of increases of up to 16
percent in premiums.
     At the same time, trustees supported the pursuit of wellness and
health promotion initiatives within the ELCA.
     The current system of salary-based contributions to the health plan
also came under discussion at the meeting, which was largely devoted to
long-term strategy planning.  A report noted that premiums based on
geography appear to be more equitable in covering the costs of health care
among ELCA congregations nationwide.
      Church employees with higher incomes now subsidize coverage of
lower-income employees.  Trustees resolved to address the ELCA health rate
structure and to begin discussions that address the need for future health
rate subsidies for ELCA congregations with limited resources.
     Another resolution called on the board to begin discussions in the
ELCA regarding the need to supplement pension benefits for retirees and
surviving spouses receiving very low pensions.  Currently 31 percent of
persons with pensions receive less than $300 per month.  There was also
discussion on the need for supplemental pension contributions for pastors
serving with low salaries.
     In other action, the board:
* Announced it will begin offering endorsed Medicare HMOs to eligible
retirees by Jan. 1, 2000.  This is in response to a new federal
Medicare+Choice program that goes into effect in 1999.  While managed care
organizations are encouraged to offer this program, only a handful have
applied to date.
* Passed a resolution to extend a more flexible pension plan option to lay
church employees.  Currently only 21 percent of such employees are enrolled
in the overall pension and medical benefits program.  Sixty-six percent of
lay employees have no pension plan.  Three percent have no health care
coverage, while 76 percent have other health care coverage, such as through
a spouse's employer.
* Introduced Laura H. Gilbert, the new vice president of organizational
effectiveness -- which includes organizational development, internal audit
and human resources.  Gilbert, 45, holds a doctorate in educational
psychology from the University of Minnesota.
* Announced that the board's computer systems should be Year 2000 compliant
by mid-1999.
* Set the Transitional Pension Fund interest rate for 1999 at 8.4 percent.
     The ELCA Board of Pensions provides pension, medical and other
benefits for the ELCA's 48,000 pastors and lay employees. The pension board
currently has $4.2 billion under management.

For information contact:
Frank Imhoff, Assoc. Director 1-773-380-2955 or NEWS@ELCA.ORG
http://www.elca.org/co/news/current.html