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
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About the Evangelical Lutheran Church in America:
The ELCA is one of the largest Christian denominations in the United States, with 2.8 million members in more than 8,500 worshiping communities across the 50 states and in the Caribbean region. Known as the church of "God's work. Our hands.," the ELCA emphasizes the saving grace of God through faith in Jesus Christ, unity among Christians and service in the world. The ELCA's roots are in the writings of the German church reformer Martin Luther.
For information contact:
Candice Hill Buchbinder
Public Relations Manager
Candice.HillBuchbinder@ELCA.org
