wfn.org | ELCA Health Plan Rates to Rise in 2000

[News News <NEWS@ELCA.ORG>]

ELCA NEWS SERVICE

August 13, 1999

ELCA HEALTH PLAN RATES TO RISE IN 2000
99-210-SS*

     MINNEAPOLIS (ELCA) -- Evangelical Lutheran Church in America
(ELCA) health plan contribution rates for sponsored members will
increase an average of 10 percent next year. The ELCA Board of Pensions
trustees met here Aug. 4-6 and approved the increase to keep pace with
rising health care costs.
     Board trustees approved a rate of member-only coverage at 9.1
percent of salary; member and spouse or children at 15 percent of
salary; and member, spouse and children at 21.2 percent of salary. The
minimum and maximum amounts also will increase to cover the rising costs
of administering a national health plan.  Contribution rates for
disability and survivor benefits will remain the same.
     The board has estimated claims for 2000 to rise from $62.9 million
to $65.3 million for non-retired members. The board has also projected
an increase in retirees' incurred claims from $26.6 million to $31.5
million. These increases are reflected in the new rates, which are used
to cover the costs of projected claims along with related administrative
expenses. Of every $1 collected for the ELCA health plan, 90 cents goes
back to members as benefits.
     With $4.8 billion under management, the nonprofit Board of
Pensions provides pension, health and other benefits for the ELCA's
clergy, lay employees and their families.
     In other action, the trustees re-elected John G. Kapanke to
another four-year term as president of the Board of Pensions.
     The trustees also focused significant attention on revising the
formula for health care cost sharing. "The current rate structure is
salary-based, but rates don't vary by geographic area despite
significant variations in [health care] cost by area," said David G.
Adams, vice president of research and design for the pension unit. "As a
result, congregations located in lower cost areas tend to subsidize
congregations in higher cost areas."
     ELCA Board of Pensions staff members have conducted meetings with
the 65 ELCA synod bishops.  Most support some change in the current
system, Adams said.
     "The dilemma is that we must balance being competitive [in the
marketplace] with being in line with the church's mission," Adams said.
     The board reviewed some options for cost sharing but deferred its
decision until further study.

* Sonia C. Solomonson is managing editor of The Lutheran, the magazine
of the ELCA.

For information contact:
John Brooks, Director (773) 380-2958 or NEWS@ELCA.ORG
http://listserv.elca.org/archives/elcanews.html