New resources created in effort to save Brethren Medical Plan.

Brethren Benefit Trust (BBT) is making new resources available as part of its effort to save the Brethren Medical Plan. The plan is for Church of the Brethren pastors and church employees, district employees, and employees of Annual Conference agencies, and affiliated agencies and institutions, and their families. A video addressing questions about the plan, a power point presentation on the history of the plan, information about Health Savings Accounts (HSAs), and information about all of the Brethren Insurance Plans, are being made available free of charge. BBT also has worked with the districts, agencies, and Ministers' Association to create an advisory panel for the plan, is training advocates to promote the plan in districts, and will begin providing HSAs in 2006.

The Brethren Medical Plan is in a "death spiral," a downward cyclical phenomenon caused by decreased membership and the erosion of a good spread of risk, increased health care costs, and increased premiums (see the Newsline of Dec. 3, 2004). With the agencies and in districts that have more than 75 percent participation among eligible pastors and staff, the premiums-to-claims ratio is such that the plan should be able to survive, BBT reported. In districts where there is less than 75 percent participation, the premiums-to-claims ratio is such that, left unchecked, the plan could go bankrupt in several years.

Revitalization of the Brethren Medical Plan will come through increased membership and a better spread of health risk. BBT has reinstated a requirement of 75 percent participation among eligible congregations in each district, for districts to continue in the plan. If a district does not have commitments from its congregations by Aug. 31, 2006, to meet that goal, all church employees in the district will be ineligible for the plan on Jan. 1, 2007. BBT states that the 75 percent requirement was part of the Brethren Medical Plan when it began in the 1950s, but "fell by the wayside" in the early 1980s. "The plan must regain an appropriate spread of risk in order to continue," BBT said.

The video helps answer many questions about the Brethren Medical Plan, according to BBT's "Insurance Update" newsletter. It explains the benefits of guaranteed group insurance coverage and the ramifications for pastors and church employees if a district does not meet the 75 percent goal. The video premiered Feb. 2 during a meeting of BBT staff and the Council of District Executives.

BBT has begun training advocates to work in each district to promote the plan with congregations and church leaders. The advocates will use the new video to help rebuild participation in the plan. A first group of seven advocates was trained on March 7-8. As of March 17, 12 of the denomination's 23 districts had named advocates. More advocate trainings will be held in late spring.

In addition, a Brethren Medical Plan Advisory Panel has been formed to create a high-deductible medical plan design using HSAs. The panel includes one person each from the Pastoral Compensation and Benefits Advisory Committee (an Annual Conference committee), the Council of District Executives, the Ministers' Association, the Annual Conference agencies, and BBT staff. The panel will hold its first meeting March 31. HSAs, which must be used in conjunction with a high-deductible health plan, are "a way to set aside money for medical, dental, and vision care expenses not paid by an insurance plan or a flexible spending account," BBT said in the newsletter. The Brethren Medical Plan will begin implementing HSAs on Jan. 1, 2006.

An April 18 follow-up meeting between BBT and the Council of District Executives will be held in Richmond, Ind. It was requested by the district executives, BBT said, and will include members of BBT's board and staff, executives of the Annual Conference agencies, representatives of Annual Conference, and members of the Pastoral Compensation and Benefits Advisory Committee. This summer the Brethren Medical Plan will be a major topic of discussion at Annual Conference in Peoria, Ill.

To order the video in DVD or VHS format, or to receive any other resource mentioned above, call 800-746-1505 ext. 374 or e-mail lpiatt_bbt@brethren.org.

Source: 03/30/2005 Newsline