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Benefit Alternatives

Benefit Alternatives. Pat Haines SVP, Benefits. Topical Overview . Defining the Need The Economics of the BOP Plan Public Exchange Basics Available Resources. Defining the Need. Church Size Congregational Resources Growth in Part-time Ministry.

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Benefit Alternatives

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  1. Benefit Alternatives Pat Haines SVP, Benefits

  2. Topical Overview • Defining the Need • The Economics of the BOP Plan • Public Exchange Basics • Available Resources

  3. Defining the Need • Church Size • Congregational Resources • Growth in Part-time Ministry

  4. The Economics of the BOP Traditional Plan • Current Demographics • Minimum vs. Maximum Participation • Average Cost of Coverage • Relationship between Dues and Cost

  5. Covered Population Demographics • Members participating in Traditional Medical Plan as a result of their employment with a church or employing organization: • 11,575 Total Members • 66% (7,659) are Teaching Elders • 34% (3,916) are Lay employees

  6. Participation at Minimum • 18% (1,385) of Teaching Elders participate at the 2014 minimum of $42,000 • 62% (2,435) of Lay members participate at the 2014 minimum • 33% (3,820) of all members participate at the 2014 minimum

  7. Participation at Maximum • 1.9% (145) of Teaching Elders participate at the 2014 maximum of $124,000 • 1.5% (57) of Lay Members participate at the 2014 maximum • 1.7% (202) of all Members participate at 2014 maximum

  8. Population by Salary 80% of Lay members 42% of Teaching Elders 1.8% of Lay members 2.8% of Teaching Elders

  9. Average Medical Plan Costs • Participating at Member-Only Members Covering at Least One Dependent + • Per Family Unit =

  10. Relationship Between Dues and Cost • The Value of Community Nature • 2014 Minimum Dues $9,660 = 74% of $13,000 Average Cost • 2014 Maximum Dues $28,520 = 219% of $13,000 Average Cost

  11. Relationship Between Dues and Cost The Value of Community Nature • 219% of Average Cost • Average Cost • $13,000 • 74% of Average Cost • 2014 Minimum Dues Participation Basis • 2014 Maximum Dues Participation Basis

  12. The Affordable Care Act • Primary Objectives • Address Access and Affordability • Approach • Individual Mandate • Uniform Coverage Standards • Premium Tax Credits

  13. Public Exchanges: Accessible and Affordable Coverage as of 1/1/2014 • Exchange Essentials • State based • Designed for individuals and small businesses • Metallic plan options

  14. Public Exchanges: Accessible and Affordable Coverage • Core Functions • Consumer Assistance • Plan Management • Eligibility • Enrollment • Financial Management

  15. Public Exchanges: Current State • Marketplace Decisions: • State Based: 17 (includes DC) State operates all exchange activities • Federally Facilitated: 27 HHS operates • Partnership: 7 State operates activities for Plan Management and/or consumer assistance

  16. Marketplace Decisions

  17. Public Exchanges: Current State • Open Enrollment: October 2013 – March 2014 • Enrollment statistics • Early concerns • Systems issues • Consumer confusion • Narrow networks • Geographic (urban vs. rural) variability: choices and cost

  18. Public Exchanges: How They Are Designed To Work • Plans Offered: Minimally, one silver and one gold • Plan Types: HMO, PPO, High Deductible, provided they achieve actuarial value • Distinguishing Product Characteristics: provider network, customer service, ancillary products

  19. Public Exchanges: Premium Subsidy • Eligibility: 85% of those purchasing coverage on exchange will likely qualify • Household income < 400% of FPL ($95,400 family of four) • No access to “affordable” coverage through employer • Impact • Caps coverage cost (for 2nd lowest cost Silver Plan) at 2% - 9.5% of household income

  20. Public Exchanges: Cost-Sharing Subsidy • Enriches Silver Plan • Reduces out-of-pocket maximum • Converts Silver to Platinum for those earning < 200% FPL ($47,700 for family of four)

  21. Understanding the BOP Benchmarks • Traditional Plan (23% effective salary) • Minimum Dues Basis ($42,000) $805/month; $9,660/year • Median Dues Basis ($54,500) $1,363/month; $16,350/year • Maximum Dues Basis ($124,000) $2,377/month; $28,520/year

  22. Understanding the BOP Benchmarks • Affiliated Benefits Program

  23. Understanding the BOP Benchmarks • Seminary Students

  24. Understanding the BOP Benchmarks • Medical Continuation Coverage

  25. Public Exchanges: How To “Shop” • It All Starts Here https://www.healthcare.gov/

  26. Public Exchanges: Some Pricing Samples

  27. Public Exchanges: Some Pricing Samples

  28. Public Exchanges: Some Pricing Samples

  29. Public Exchanges: Some Pricing Samples

  30. Public Exchanges: Some Pricing Samples

  31. Public Exchanges: Let’s “Shop” • It All Starts Here https://www.healthcare.gov/ • And Now Here https://www.healthcare.gov/find-premium-estimates/

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