Online Archives

NEWS

BY JOHN COLEMAN
UMCONNECTION STAFF

Following an extensive review of options, the Baltimore-Washington Conference Board of Pensions and Health Benefits has voted to merge its healthcare plan into the HealthFlex plan administered by the General Board of Pensions and Health Benefits, effective Jan. 1, 2006.

The plan provides health insurance coverage to clergy, conference staff and local church lay employees.

The conference Council on Finance and Administration approved the change in March upon recommendation by the conference benefits board. CFA will present information about the decision to the four Pre-Conference Informational Meetings on April 23 and to the full annual conference session in Baltimore on May 28.

Gould

'This change will enable the conference to focus more on its core mission of making disciples for Jesus Christ,' said Frank Gould, of Shady Side UMC, referring to the anticipated shift in some administrative tasks to the general board.

Gould recently became chairman of the conference pensions and health benefits board, succeeding the Rev. Dan Wright who retired from the board in late 2004.

'Joining HealthFlex adds our approximately 1,500 insured participants to their pool of about 20,000 participants,' said Gould, 'giving us more bargaining power with health care providers.' The change also spreads the risk involved in covering large and multiple claims, he added, thus, lowering the amount of funds the conference needs in its emergency reserves.

The conference board first considered HealthFlex in 1996, Gould recalled, but chose instead to stay with the current self-insured plan in which the conference itself insures clergy and lay participants and hires an insurance company, currently CIGNA, to handle many of the related claims services.

'We are required by policy to seek new bids from insurance carriers every four years in order to ensure that we are offering the best possible coverage for the best possible cost,' said Martha Knight, Director of Finance and Administration.

The board gave HealthFlex another look when it sought new bids in 2004. Members met with plan representatives, surveyed five of the 28 annual conferences currently insured through the plan and contacted other conferences to inquire about their customer experience and any concerns they might have, said Knight.

The HealthFlex plan would cost 1.5 percent less than the conference's current self-insured plan in 2006 and 12.7 percent less than a fully-insured plan under CIGNA, Gould said. The general board's plan has also shown a recent trend of lower cost increases than CIGNA and other plans, he added.

Dental and vision coverage are included as well as promotion of preventive health care and wellness education among participants.

'HealthFlex is tailored to the health care needs of clergy,' said Knight. 'It addresses situations we see throughout the denomination, including older participants, high stress factors and other challenges.'

A plan representative will be at the annual conference session to share information and answer questions. A transition period in the fall will include distribution of materials, articles in UMConnection and district gatherings to fully explain the plan to all participants.

'We're comfortable with the outcome of our deliberations,' said Gould, 'and we feel choosing HealthFlex is in the best interest of the conference and its members.'