Title: ELCA Health Care Rates to Increase in 2002
ELCA NEWS SERVICE

August 29, 2001

ELCA HEALTH CARE RATES TO INCREASE IN 2002
01-220-SS*

     MINNEAPOLIS (ELCA) -- Trustees for the Board of Pensions of the
Evangelical Lutheran Church in America (ELCA) approved the 2002
contribution rates for the health care plan at their Aug. 1-3 meeting
here. Rate increases will range from 6.7 percent to 16.4 percent with
an average of 10.6 percent. Rates will vary among the six rate classes
established last year by the board.
     The increase is necessary because of projected increases in claims
and health care inflation in the United States, said David G. Adams,
vice president for research and design, ELCA Board of Pensions.
     Trustees voted to extend to 2003 the transition period for
implementing the new six-class rate structure, which is based on
geographical differences in health care costs and on the levels of
salaries paid. The extension would hold down the increase for synods in
higher rate classes.
     "The goal is to get each rate class to 100 percent of what the
cost of coverage is," Adams said. "Over two years we expect each synod
to be paying up to its expected cost of coverage."
     Board of Pensions staff and trustees acknowledge the rising health
care costs as a problem for congregations.
     "There will be continued concern over the rising costs," said John
G. Kapanke, president of the Board of Pensions, in his management
report. The board will continue to explore partnership opportunities
with other denominational health plans, he added.
     Ecumenical partnership will begin with pharmaceutical purchases.
Trustees approved an ecumenical pharmacy purchasing coalition that will
mean an estimated savings of $3.2 million for the ELCA pension plan in
2002. The Board of Pensions is joining with 10 other church bodies to
purchase prescription medications, a move that will change the pharmacy
vendor and will increase the non-preferred retail co-pay from $25 to $27
and the non-preferred mail order co-pay from $50 to $54.
     Trustees heard a report from an ad hoc committee -- appointed at
their February meeting -- that responded to a study document by the ELCA
task force on health and health care. The document is part of the ELCA
Division for Church in Society's (DCS) preparation for a social
statement to be brought for consideration to the 2003 Churchwide
Assembly. The ad hoc committee reported its suggestions, trustees added
theirs and adopted the report. The trustees voted that the response be
signed by all trustees and sent to DCS as that unit prepares the social
statement's first draft.
     Dr. Gwen W. Halaas, Kenosha, Wis., was selected as project
director for the ELCA health and wellness program for rostered clergy
and lay leaders, board members were told. The Board of Pensions will
provide substantial funding for the position. The project will be
coordinated through the ELCA Division for Ministry, and Halaas has a
one-year renewable contract. She resigned from the board of trustees to
be considered for the position.
     Halaas will work with the ELCA's 65 synods, social ministry
organizations and other churchwide units to develop resources and
programs aimed at maintaining the health and wellness of clergy and lay
leaders.
     In his management report, Kapanke spoke of helping clergy who
retire with extremely low pensions.
     "I want to challenge our church to build the Special Needs
Retirement Fund to $9 or $10 million in the next few years," he said. "I
know that's lofty, but we must care for our clergy."
     The trustees approved a transfer of $250,000 to the special needs
fund.
     The board will work with the ELCA Foundation in raising awareness
and donations to the fund. The Rev. Kenneth R. Olsen, who will be a new
regional representative for the Board of Pensions, will lead the board's
efforts. Olsen leaves office as bishop of the ELCA Metropolitan Chicago
Synod when his six-year term ends Aug. 31.
     In other action the trustees elected as chair Kenneth G. Bash,
Scottsdale, Ariz., and as vice chair Bradley C. Engel, Burlington, Wis.
-- -- --
     A list of contribution rates is available at
http://www.elcabop.org on the ELCA Board of Pensions Web site.

[*Sonia C. Solomonson is managing editor of The Lutheran, the magazine
of the ELCA.]


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