| Pre-conference Briefings Proposed changes to the conferences health plan will be discussed at Pre-conference Briefings: - Western Region: morning of April 26*
- Washington Region: 2 p.m., April 26 Marvin Memorial UMC, Silver Spring
- Baltimore Region: morning of May 17*
- Annapolis Region: afternoon of May 17*
*Locations will be announced in the e-connection and the UMConnection. | Health insurance changes loom by Erik AlsgaardUMConnection Staff Members of the Baltimore-Washington Annual Conference will have a tough decision to make in June: increase medical insurance premiums paid by participants, or cut back on health care benefits. This, according to Carole Silberhorn, conference director of pensions and health benefits, is a multi-million dollar question and one that many conferences in the United States are facing today. This is a very hard decision to make, she said. The situation now with the current costs is that we cannot continue as weve known it, or well be broke at some point in the future. The problem, according to Frank Gould, chairman of the medical subcommittee of the conference Board of Pension and Health Benefits, is that the conference has had to pay increasing costs for medical premiums out of its reserves. Those reserves, he said, are dwindling rapidly. From 2002 to 2003, medical premiums increased in the neighborhood of 20 to 21 percent, said Gould. Out of that, only a 12 percent increase was passed along to churches. Reserves made up the rest. We could drain our reserves, he said, but we dont want to do that. Thus, he said, the committee is banking on the idea that people would rather pay more for the health care they already receive than have benefits reduced or halted. If adopted by the annual conference, the changes would affect everyone in the plan. Some changes would be phased in over the next two years. The contribution schedule will be changed, said Silberhorn, so that each person in the plan will have something to pay, including retirees. Up to now, said Gould, clergy have had all of their personal medical premiums paid by the church, and half of their family coverage. While the family piece wont change, well be asking all categories of participants to begin to pay a portion of their premium, he said, something like 10 percent. Another part of the problem, said Silberhorn, is that the conference must start funding future medical liabilities now rather than later. The conference has set aside $10 million from reserves to start, she said, but that leaves a shortfall of $40 million for future benefits. Changes in eligibility for health benefits in retirement are also part of the resolution coming to conference, said Silberhorn. Currently, a clergy person needs to have 20 years full-time service in The United Methodist Church to get free benefits for themselves, spouses and adult dependent children. If adopted, eligibility would change to require 35 years of full-time service to receive 90 percent of the premium costs. Also, under the proposal, if a clergy person retires before age 65, the new plan would require that person to be responsible for part of their premiums until they reach age 65, and those costs will vary, said Silberhorn. The plan, adopted by the conference Board of Pensions and Health Benefits, will be studied by the Cabinet in the near future. A packet of information is expected to be mailed soon, including a frequently asked questions sheet and details of the proposal. Following that, the new plan will go for review and questions to the Pre-conference briefings scheduled this spring. The only vote on the proposal will be at annual conference. And if the conference does not approve it? According to Gould, Were guessing that the average clergy would rather pay a little more and keep their benefits. Well see if were right. |
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