ELCA NEWS SERVICE
August 11, 2006
2007 ELCA Health Care Rates to Increase About 7 Percent
06-123-GA*
MINNEAPOLIS (ELCA) -- As organizations struggle to find
resources for health plan contribution rates, trustees of the
Board of Pensions of the Evangelical Lutheran Church in America
(ELCA) approved an overall rate increase of about 7 percent for
2007.
At its Aug. 5 meeting here, trustees approved the
contribution rates for 2007 with a 7 percent average contribution
rate increase for the ELCA health plan and a 0.5 percent decrease
in the contribution rate charged for the ELCA disability plan.
Recommendations for the coming year continue a comprehensive
design including annual deductibles, coinsurance and annual out-
of-pocket maximums, but update the dollar amounts to address
medical inflation. The preventive health benefit also increased.
David G. Adams, vice president, products and services, ELCA
Board of Pensions, said the plan continues to support broad
health plan objectives by:
+ providing adequate benefits for members at a cost affordable to
congregations
+ sharing the cost between members and sponsoring employers
+ promoting member wellness and engagement in the process of
purchasing health care services
As an interdependent church, the intent is that ELCA
congregations with means assist those with lesser means, Adams
said. The board's six-class rate structure is based on defined
geographical differences in health care costs and salaries.
Health plan contributions are based on individual compensation.
"Our objectives support and enhance our 'faithful to your
well-being' value promised to members and sponsoring
organizations," said John G. Kapanke, president, ELCA Board of
Pensions. "We continue to make strides in advancing our value
promise as evidenced in the most recent value perception survey
results. We strive to fulfill our mission and achieve our vision
to help those we serve lead healthy lives and achieve financial
security."
For 2008 the health plan design is aimed at fostering more
individual responsibility. There will be a strong emphasis on
wellness, encouraging each member to make good decisions in daily
life to help keep health care costs down, said Bradley J. Joern,
director, health products, ELCA Board of Pensions.
"Continuing to have increases of 10 to 15 percent each year
is not sustainable," Joern said. "The long-range goal continues
to be to strengthen the wellness plan with a continued campaign
for behavioral change, along with plans for improving the support
structure to keep down the high costs associated with claims."
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Information about the ELCA Board of Pensions is at
http://www.ELCAbop.org/
on the ELCA Web site.
*Gayle Aldrich is a free-lance writer who lives in Minneapolis.
For information contact:
John Brooks, Director (773) 380-2958 or [log in to unmask]
http://www.elca.org/news
ELCA News Blog: http://www.elca.org/news/blog
