Committee completes Medical Plan study.

The following article appeared in the "Benefit News" newsletter from Brethren Benefit Trust (BBT), giving more information about the study of the Brethren Medical Plan:

After nearly two years of study, the Annual Conference Brethren Medical Plan Study Committee has issued three recommendations for the 2007 Annual Conference delegates to consider.

Citing a 78 percent drop in participation in the Brethren Medical Plan since 1993, when there were more than 3,119 primary members, to just 684 as of January 2007, the committee concluded that "the Brethren Medical Plan's medical coverage component is neither feasible nor viable in its current state." The committee recommends that the medical insurance component for ministers and retirees be phased out.

"The only way to ensure the Medical Plans' longterm existence," the study said, "would be to expand its risk pool and to increase its reserves." In order to expand the risk pool, more participants would have to join the plan who could help spread the risk to a more acceptable level. This goal appears to be unattainable, the study concluded, based on the history of participation in the plan and the recent efforts expended in trying to increase denomination-wide participation. Since 2005 alone, total participation in the Medical Plan has decreased by 16 percent, further shrinking the risk pool. The report stated that "attracting more participants just like the high-risk group already in the plan would not solve the problem."

Reserves are of equal concern, the study said. While the Brethren Medical Plan is currently functioning, it does not have a reserve balance sufficient to incur several years of negative loss claims similar to what it experienced in the catastrophic years of 2003-04.

The study reported that participants in the Brethren Medical Plan like the plan, feel it is competitive with other plans, and have seen a significant improvement in customer service and the availability of network providers since Blue Cross/Blue Shield became the service provider. Many participants continue in the plan out of a sense of mutuality and need, the study said.

In contrast to its recommendation regarding ministers and retirees, the committee does recommend that BBT continue to explore the viability of the plan for the church-related agencies. In addition, it recommends that BBT be directed to attempt to find alternative medical coverage for those current participants who would not otherwise be able to obtain or afford medical insurance. The committee also recommends that the stand-alone plans of longterm disability, life, vision, and dental insurance continue.

BBT is diligently working to be prepared for whatever action the 2007 Annual Conference takes regarding the study committee's three recommendations, whether delegates approve, modify, reject, or delay action on the recommendations, in whole or in part. If changes are made to the plan, adequate time is expected to be provided for members to change their medical coverage. All eligible employees are to participate in the Brethren Medical Plan through the conclusion of the study, as directed by Annual Conference 2005. BBT is committed to providing as much information as possible regarding the Brethren Medical Plan. For more information visit www.brethrenbenefittrust.com or call the Insurance Department at 800-746-1505.

Three events are planned to discuss the Brethren Medical Plan at Annual Conference 2007: A hearing by the Brethren Medical Plan Study Committee is scheduled for Saturday, June 30, at 9 p.m. to provide a clearer understanding of the report; as a business item, the study committee's report is tentatively scheduled to be considered by delegates on Monday, July 2, at 10:50 a.m.; as a follow up, a BBT insight session is scheduled that evening at 9 p.m. to discuss BBT's next steps.

We request that all be prayerful and discerning in determining what God would have for the Church of the Brethren regarding this issue.

--Jay Wittmeyer is the manager of publications for Brethren Benefit Trust.

Source: 4/11/2007 Newsline Extra