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Board of Medical Benefits Direct Invoice Listening Session Presented by Reverend Curtis Bray Chair-Board of Medical Benefits David Stotts, CPA Treasurer/Conference Benefits Officer Larry Davis, MBA CCA Benefits Administrator.
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Board of Medical BenefitsDirect Invoice Listening SessionPresented by Reverend Curtis BrayChair-Board of Medical Benefits David Stotts, CPATreasurer/Conference Benefits OfficerLarry Davis, MBA CCABenefits Administrator
Mississippi Conference Mission Statement The Mississippi Annual Conference-empowered by love, generosity, justice, and apprenticeship-forms spiritual leaders, faith communities, and connections so more disciples of Jesus Christ transform the world.
Developing Spiritual Leaders • Cabinet and Senior Staff and other Conference Leaders are working to become stronger Spiritual Leaders • Loving, Learning, Leading • You will see this modeled in conference meetings
Loving • What Glory Sightings have you seen lately • Where have you witnessed God at work in your life • Prayer
Learning • Now we will move into the Learning Time
Open Enrollment • Medical Plans • Dental and vision if on one of the health plans • FSA-HSA • Retiree open enrollment • Wellness • How to enroll
What do we want to accomplish today? • Why should we direct invoice medical insurance? • What is our current reality? • What method is the Board of Medical Benefits Proposing for Direct Invoice?
What do we want to accomplish today? • So how does this really work? • How do we maintain the flat budget promise in 2016? • Where do we go from here?
Why should we direct invoice medical insurance? • We have learned that direct invoice has raised the pension collection rate from average 90 percent to 98% • Rising costs of pension were stabilized • Direct Invoice allows the local church to control their cost of having a pastor
Why should we direct invoice medical insurance? • Direct Invoice enables mission shares to be totally for mission and ministry • 2008 Adopted a 4 Phase Plan of Direct Invoicing-Now is the time to explore the process
What is our current reality? • Action at the 2013 annual conference stated that beginning in 2014 churches with less than full time pastors were not apportioned-a GREAT saving to 267 churches • In 2014 ACA required employees working 30 hours a week or more to be offered health insurance • With that requirement, a pastor earning 75% of the local pastor minimum salary is eligible for conference insurance. So for 2015 mission shares, that was based on the 2014 $19,954. This added back 166 churches.
What is our current reality? • Entities other than churches that have employees eligible to participate in the health insurance pay $8,184 annually because they do not pay mission shares. • Direct invoices will not change the billing to these entities or the way in which they share the cost with the participants • Cost sharing with the participant is a decision of each salary paying entity • So we understand from this that the Connectional spirit is alive because churches paying less than $8184 are receiving benefits form the other churches-611.
What method is the Board of Medical Benefits Proposing for Direct Invoice? • Proposal is to use a percentage of plan compensation-same base as Pension Billing • Phased in over a 3 year period beginning in 2016 • For projection purposes, 11.5% is used which would be what would be direct invoiced in 2015?
So how does this really work • There will be an amount in mission shares for the active medical plan on Line 7 and a direct invoice for 2016-2017. Beginning in 2018, there will be full direct invoicing for benefits.
Flat Budget Promise in 2016 • 2016 Flat Budget will be honored • Flat budget is set at $15,600,000 in 2016 • Apportioned Mission Shares will be $14,417,500 ****************************************************** • Total $15,600,000 • Less1/3 of Line 7 $ 1,182,500 (Direct Invoice Amount)
Where do we go from here? • Hear your thoughts on the direct invoice for Medical Insurance-Line 7 and billing method • BOMB will meet back to adjust the plan based on the listening sessions-We will listen and consider all comments made • Prepare the presentation for announcement in the early spring of 2015 including the percentage to be applied on the plan compensation for direct invoice
Leading • How can you go from here and model spiritual leadership through leading