Title: 2007 ELCA Health Care Rates to Increase About 7 Percent ELCA NEWS SERVICE
August 11, 2006
2007 ELCA Health Care Rates to Increase About 7 Percent 06-123-GA*
MINNEAPOLIS (ELCA) -- As organizations struggle to find resources for health plan contribution rates, trustees of the Board of Pensions of the Evangelical Lutheran Church in America (ELCA) approved an overall rate increase of about 7 percent for 2007.
At its Aug. 5 meeting here, trustees approved the contribution rates for 2007 with a 7 percent average contribution rate increase for the ELCA health plan and a 0.5 percent decrease in the contribution rate charged for the ELCA disability plan.
Recommendations for the coming year continue a comprehensive design including annual deductibles, coinsurance and annual out- of-pocket maximums, but update the dollar amounts to address medical inflation. The preventive health benefit also increased.
David G. Adams, vice president, products and services, ELCA Board of Pensions, said the plan continues to support broad health plan objectives by: + providing adequate benefits for members at a cost affordable to congregations + sharing the cost between members and sponsoring employers + promoting member wellness and engagement in the process of purchasing health care services
As an interdependent church, the intent is that ELCA congregations with means assist those with lesser means, Adams said. The board's six-class rate structure is based on defined geographical differences in health care costs and salaries. Health plan contributions are based on individual compensation.
"Our objectives support and enhance our 'faithful to your well-being' value promised to members and sponsoring organizations," said John G. Kapanke, president, ELCA Board of Pensions. "We continue to make strides in advancing our value promise as evidenced in the most recent value perception survey results. We strive to fulfill our mission and achieve our vision to help those we serve lead healthy lives and achieve financial security."
For 2008 the health plan design is aimed at fostering more individual responsibility. There will be a strong emphasis on wellness, encouraging each member to make good decisions in daily life to help keep health care costs down, said Bradley J. Joern, director, health products, ELCA Board of Pensions.
"Continuing to have increases of 10 to 15 percent each year is not sustainable," Joern said. "The long-range goal continues to be to strengthen the wellness plan with a continued campaign for behavioral change, along with plans for improving the support structure to keep down the high costs associated with claims."
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Information about the ELCA Board of Pensions is at http://www.ELCAbop.org/ on the ELCA Web site.
*Gayle Aldrich is a free-lance writer who lives in Minneapolis.
For information contact:
John Brooks, Director (773) 380-2958 or news@elca.org http://www.elca.org/news ELCA News Blog: http://www.elca.org/news/blog