The plan contains additional good news for those covered by the plan – introduction of a new vision benefit, according to Elliott Johnson, director of finance for the Evangelical Covenant Church.
The new vision plan, which includes a co-pay structure and certain allowances similar to other areas of medical coverage, provides benefits in areas of eye examination, frames, and lens options for both frames and contacts.
“An important element in our ability to constrain the level of rate increase is the fact that we work in partnership with many other denominations to obtain larger medical provider discounts and achieve lower overall administrative costs,” Johnson notes. He also credits some of the success in holding down rate increases to the use of large, efficient, and well-administered insurance providers.
The Covenant’s medical provider is Blue Cross/Blue Shield, which is the largest medical provider group in the United States, and dental coverage is through Delta Dental, the country’s largest dental program. Long-term disability coverage is provided by UNUM, the largest provider of such insurance, with life insurance handled by American International Group (AIG), one of the largest insurers in the world. Another of the larger providers, Express Scripts, handles prescription drug benefits.
The economic benefit to local Covenant churches and other ministry areas is perhaps best illustrated in the accompanying chart. While average market rates for insurance coverage have more than doubled over the past six years – increasing by 105 percent – Bethany’s rates during the same period have increased only 30 percent.
“Against this background, a five percent increase for our plan is good news,” states a letter sent this week to those covered by the plan. “In fact, over the last six years, our compound medical rate increase of 4.7 percent annually compares quite favorably with double-digit annual increases for most employer plans.”
The Bethany program provides coverage for pastors, employees of local Covenant churches and regional conferences, conference centers and camps, Covenant pastors who work for voluntary employers of the Covenant Pension Plan, and denominational offices. Medical coverage is available for employees who work at least 20 hours a week.
The program is administered by Bethany Benefit Services on behalf of the Evangelical Covenant Church.
The Bethany Benefit Services rate-setting process involves a detailed review of claims and premiums data, independent rate calculations by a health actuary and an outside consultant, a review by Covenant financial leaders, and respective approvals by the Health Insurance Committee and the full Covenant Board of Pensions and Benefits.
The new rates become effective January 1, 2008.
Churches or individuals interested in learning more about participation in the Bethany program may call Bethany staff members at 800-313-8955.
