Arkansas Conference - Group Insurance Report 2008

Group Insurance Report

The purpose of the Conference Committee on Group Insurance is to administer a Comprehensive Health Insurance Program, selected by the Annual Conference, for active and retired clergy of the Annual Conference, along with full-time lay employees of local churches.All of the actions taken by the Committee are subject to review and revision by the Annual Conference.

At the regular session of the former North Arkansas and Little Rock Conferences on June 5, 1995 the Conference approved the Insurance Committee’s recommendation to merge our Conference Group Plan for both Active, Retired and Medicare supplement participants to form our own Group Self-funded Insurance program with Spradley & Coker of Little Rock as our Plan Administrator.The Self-funded Group Plan was effective August 1, 1995.On March 1, 1997 the third party Administrator was changed to Corporate Benefit Solutions, Inc. (CBS) and effective January 1, 2003 their name changed to CoreSource-Little Rock.

Since the forming of a Conference Group Health Plan on June 5, 1995 the former North Arkansas and Little Rock Conferences administered the plan jointly.Adjustments to the plan were made by the two Committees meeting jointly, every year. INPLIED consent by both Committees was used to tweak” the plan each year.The Plan benefit adjustments were done based on claim paid history and were done only to hold down exorbitant premium cost increases.Because no record can be found giving “express/implied” consent to the Committee, the Annual Conference gives consent to Arkansas Conference Committee on Group Insurance to make adjustments to the Conference Group Health Plan.ALL SUCH ADJUSTMENTS ARE ALWAYS SUBJECT TO REVIEW AND REVISION BY THE ANNUAL CONFERENCE.

Realizing that it is necessary, in a self-funded group health insurance plan, to maintain a reserve in case of catastrophic claims upon our plan, it shall be the policy of the Committee on Group Insurance, to maintain a Reserve balance of approximately one year’s annual gross premium and administration costs.Any excess over and above the one year Reserve will be distributed back to The Annual Conference Self-funded Group Health Plan in the form of maintained, adjusted premiums or enhanced benefits.Any Reserve overage may “only” be used for the benefit of its Participants in The Group Health Insurance Plan.A Reserve held only by the former North Arkansas Conference used exclusively to pay the salary and expenses of the Administrative Secretary, or Conference Benefit Officer and related expenses of operating The Committee. All other expenses shall be paid only with the express consent of The Arkansas Annual Conference.

The cost of health care is a troublesome issue for our conference. To do nothing is to risk our ability to deliver benefits in the future. At the last annual conference, we reported that we might bring to this year's conference a motion to create an "appointment rate premium" for all full time clergy under regular appointment. We have done the research and feel that this is a doable endeavor. However, we were not convinced the timing is right to gather the support needed to make the change this year. In the meantime, the committee is taking several pro-active measures to increase the health of our clergy families and slow down the increasing costs of our health care program.

We seek to:

• offer the best benefits to pastors and their families
• help our pastors and their families to optimize their health
• contain healthcare costs

The membership of the Insurance Committee shall be composed of a chairperson, six clergy at large, and six laity at large, nominated by the Conference Nominating Committee and elected by the Annual Conference.Additional members are a cabinet representative, the chair of the Board of Pensions, the chair of the Board on Professional Ministry, the Conference Treasurer, all with vote.The Committee may employ an administrative secretary.

1.All Full, Associate, and Probationary Members, all Full-Time Local Pastors of the Conference under regular Arkansas appointment and their dependents (except students serving in or those employed by other conferences or agencies that have compulsory programs, members under special appointment outside the Conference, or retired military personnel serving in the Conference), and all full-time employees of the Conference shall participate in the Health Benefits Program of the Arkansas Conference.

A. The Program is open for full-time lay staff (working at least 30 hrs. per week), Probationers, Student Local Pastors, Full Deacons, Diaconal Ministers, and Full Members serving less than full-time appointment or employment.This is optional for the eligible participant and the participant must make the necessary arrangements to enroll and will be responsible for the total premium.

B.A participant must enroll in writing with the Office of Insurance and Pensions within 30 days after the eligibility date. The eligibility date is the date of first appointment (business date of Annual Conference) or date of employment.

C.All retired clergy, spouses, surviving spouses, eligible dependent children and surviving eligible dependent children of retired clergy who are the responsibility of The Arkansas Conference and have been participating in the Program on the date of retirement shall be eligible to continue participation.Retired participants and their spouses who have attained age 65 must have Medicare parts A and B at the participant’s own expense.The group medical plan will coordinate benefits with Medicare whether or not the participant or their spouse is actually receiving benefits.Conference Group Medical Participants who are retired are asked NOT TO ENROLL IN MEDICARE PART D.Your Conference prescription drug benefit acting as a Medicare Subsidy will remain the same coverage which you had in your Active years.

D.The Conference Benefit Officer in the Treasurer’s office will check with the District Superintendent concerning a pastor applying for enrollment for the first time.The eligibility of any full-time lay employee of a church will be checked with the lead pastor, and payment of premiums agreed upon before enrollment.

E.In order to be in compliance with the new federal law (HIPPA), we will hold a thirty (30) day OPEN ENROLLMENT period during September of each year, to be effective OCTOBER 1ST.Open enrollment will be for all eligible persons who have not enrolled in a timely fashion.We may impose an eighteen (18) month pre-existing conditions limitation.

The responsibility of determining the source of funding for the health insurance benefit program for retired clergy and their dependents shall be the responsibility of the Arkansas Conference Board of Pensions.Employee compensation, benefit package, and office expenses for Conference Benefit Officers is to be shared equally with the Arkansas Conference Board of Pensions.

All vesting and eligibility questions regarding retired clergy, spouses, and surviving spouses will be under the purview of the Arkansas Conference Board of Pensions.

Upon union, churches will pay 100% of the cost of health insurance premiums for Active Clergy.

All reserve money in all Insurance Committee’s accounts will come together as one account under the new Arkansas Conference Insurance Committee.

All of the above was adopted by the Special Called Joint Session of both Conferences on November 23, 2002.

All previously adopted procedures of the two Insurance Committees that are not in conflict with the above will continue to be used by the Insurance Committee to administer the program

For example: the following procedure will continue to be used in conjunction with collecting premiums;

1. The insurance premiums are billed quarterly to the lead church.The premium is due 30 days from the statement date shown on the invoice sent from the Treasurer’s office.All participants are responsible for seeing that the total premium due is sent to: The Arkansas Conference, PO Box 9477, Pine Bluff, AR 71611 no later that the due date.

2.The committee shall use the following measures when premiums are not received on time:

A.A second notice will be sent to the Church 14 days after the due date. A copy of the second notice will be sent to the applicable District Superintendent.The church may be billed a late charge of $20.00 after this second notice is sent.

B.A third notice will be sent to the Church and Cabinet Representative 7 days after the second notice with a possible termination date clearly stated.

C.After the third notice has been sent, and no response has been made, the participant may be terminated from the plan and the Cabinet Representative notified. [Note: No participant will ever be terminated from the plan until personal contact has been made from the Insurance Committee.]Premiums must be received before the termination date and not just post marked. Premiums received after termination will be returned to the church.

D.If coverage is terminated, you and your dependents cannot re-enroll until open-enrollment, or to be effective October first.

3.Participants in the Insurance Plan whose appointment/employment is terminated ~~will~~ may be granted an Extension of coverage (COBRA) for up to eighteen months provided:

The participant makes a written request to: CoreSource, Inc, PO Box 8215, Little Rock, AR 72221

The participant is responsible for payment of the total COBRA premium direct to CoreSource, Little Rock.

CONFERENCE GROUP MEDICAL MONTHLY PREMIUMS 2008

2008 Monthly “Active” Insurance Rates (Clergy and Lay Staff)
Participant Only...................................... $410.52
Participant with Child(ren)...................... $639.72
Family............................................. $1040.00