The year 2009 has been a year of transition for the two former Indiana Conferences. This is particularly descriptive where our health plans are concerned. Both conferences use the General Board of Pension and Health Benefits’ HealthFlex program as their health vendor in 2009. Therefore, the basic plan remains constant as we transition into a new Indiana Conference plan for 2010. We will continue to use HealthFlex as our plan provider in 2010 for our Active participants.
Combining the two conference plans will result, however, in some change for most if not all participants for 2010.
The Wellness program for 2010 will continue the Virgin Health Miles program and the use of the Health Quotient and Wellness Doctor Visits/ProCheck Health Screenings.
Participants who have a wellness physical or ProCheck Health Screening in 2009 will see a savings in their health premiums for 2010. If you were not able to participate in the 2009 ProCheck screenings, you can still receive a reduced premium if you have a wellness physical by your doctor and have them complete the Physician’s form included in this letter. If you have already been to the doctor in 2009, our office will still need to have this form completed by your doctor for you to be eligible for the reduced premium in 2010. Forms must be received by the Benefits Consultant by December 1, 2009. Both participant and spouse (if married and both are enrolled in the program) must submit a physician’s form or have received a ProCheck screening by December 1, 2009. There will be no additional ProCheck Screenings offered this year. (This form is available here.)
Later on in this communication you will find the health insurance rates. The Wellness Rate is the rate that is paid by all active clergy who have met the wellness exam/screening requirement. Persons not completing the wellness exams/screenings and submitted the proper forms by December 1, 2009, will pay the Non-Wellness Rate listed.
The discounted rate is only available to Active Clergy and Conference Lay Employees. It is not available to Retired, Student or Local Church Lay employees.
For those participants in former north churches, the increased vision benefit will not be offered in 2010. It is no longer available as part of our wellness program, nor can it be purchased as an upgrade.
The 2009 Annual Conference adopted a new rate structure for 2010. This rate structure includes a flat rate per active clergy paid by the local church and, in addition, a participant rate, based upon coverage chosen, paid by the participant and withheld from salary. (See rates document here.)
Former South churches will be instructed by their superintendents on salary adjustments that are to be made to each pastor’s salary. These mandatory adjustments to salary are to recognize the change in premium funding from 2009 to 2010. Your district superintendent will contact your pastor and staff-parish committee about these changes.
The rate that a church will pay for each active pastor in the health plan is $1,000 per month. In addition, the amounts to be withheld from the pastor’s salary are on the enclosed rate chart. The benefits office will send the church a statement in late December of this year which will confirm the rate for the coverage chosen by the pastor. The letter will also confirm whether or not the pastor has qualified for the Wellness rate.
There is a special rate for Student Local Pastors included in the rates below, as well as a rate that the conference will bill the church for local church lay persons on the plan. For lay persons, the conference will bill the Full Rate to the local church. It is up to the local church to determine the respective amounts to be paid by the church and the participant.
All premiums will be paid by Direct Debit/ACH to the church’s designated bank account. There will be no provisions in 2010 for any other form of payment. The church’s agreement to the Direct Debit/ACH is a condition of eligibility for the pastor and church to participate in the program. A Direct Debit/ACH agreement must be on file with the Conference office by December 1, 2009 for a pastor to be enrolled in the coverage for January 1, 2010.
Indiana Conference North churches and clergy will see a higher than normal increase in rates for 2010. The merging of the two conference groups resulted in a 7-11% increase in costs over former north rates. In addition to the increase brought by merging the two plans, rates from HealthFlex increased by another 9-12%. Even with these increases many Indiana Conference South churches and pastors may see a decrease in costs as a result in the change in rate structure from the church paying 99% of the costs to a higher cost sharing with the participant.
The board would have preferred to be merging the plans in a year when the increases from HealthFlex were much lower. The impact would not have been as great. Our consultants are telling us that most of their other plan sponsors are seeing 14-19% increases going into 2010. While this is certainly not the best news in light of other financial realities, these rates are necessary to keep the plan funded and to have a fair balance between what is paid by the participant and what is paid by the local church/employer.
For 2010, the Indiana Conference will offer a Section 125 plan to its local churches and health plan participants.
Persons enrolled in the Active Conference Health Plan or the Optional Term Life Plan will automatically have their participant premiums paid on a pre-tax basis. This means that premiums withheld from a participant’s salary reduce the income that is reported on the participant’s W2 by the Local Church.
In addition, this fall all participants in the Conference Health Plan will be able to enroll in a Health Care Reimbursement Account or a Dependent Care Reimbursement Account. Information on these plans will be sent to participants in September. The plan will include a debit card that allows a participant to pay for their covered medical expenses with the card, as opposed to having to pay cash in advance for deductibles and co pays. Again, more information on these plans will be sent by separate mailing in September.
As part of the conference health plan, all active clergy participants, under age 65, receive a $20,000 life insurance benefit. This benefit is only available while you are an active participant in the conference health plan. Benefits are paid to your beneficiary of choice. Additional information regarding beneficiary designations will be sent later this fall.
For questions regarding your health and wellness plans and rates, call Linda Eskew, Indiana Conference, Health Benefits Assistant, at 877-781-6706 or you can reach Linda at linda.eskew@inumc.org.
For questions about Indiana Conference, South, salary adjustments, call your District Superintendent, or Jennifer Gallagher at 877-781-6706 or you can reach Jennifer at jennifer.gallagher@inumc.org.