But increases projected for 2020, 2021
May 17, 2018
With health insurance rates projected to increase over the next three years, the South Carolina Conference Board of Pension and Health Benefits is taking steps to ease the impact on premiums paid by churches, pastors and conference employees covered by a Wespath health plan.
Health insurance costs that Wespath charges to the conference for 2019 will increase by an estimated $625,000 – about 7.8 percent overall.
The health benefits board will use investment earnings from 2017 to absorb this increase for 2019, resulting in:
- No increase in the health fee charged to churches
- Decreases in premiums for individuals electing participant-only coverage
- A mix of decreases or slight increases in premiums in other tiers
Brooks-Madden
“We are elated to be able to share this good news that will help churches,” said Valerie Brooks-Madden, chairperson of the Conference Board of Pension and Health Benefits. “Every dollar a church frees up from expenses is a dollar that can go directly to fulfilling the United Methodist Church’s mission of making disciples of Jesus Christ for the transformation of the world.”
In an effort to ease the burden of expected future premium increases on churches, pastors and conference employees, the health benefits board will continue to subsidize premiums in 2020 and 2021 – but in progressively smaller amounts. The estimated total subsidy for 2020 will be $265,000. There is no projection yet for 2021.
Westbury
“I am thrilled that the Conference Board of Pension and Health Benefits has turned what could have been an 8 percent increase in premiums into an overall 0 percent increase,” said Beth Westbury, conference treasurer. “And I am grateful for their looking ahead and giving everyone a projection of what might come in the next few years so that participants and churches can plan ahead.”
Conference leaders are giving churches and health plan participants a heads-up now that premiums likely will go up in both 2020 and 2021.
“While this is a huge win for participants, I don’t want them to become complacent in their choice of plans,” Westbury said. “They need to evaluate their plan choices each year to find the best match for them.”
Because the health benefits board is making assumptions about future premium increases and enrollment, it can only project what health rates for churches and individuals might look like in those years. Actual rate recommendations will be presented annually.
Premiums for optional dental and vision plans will not be subsidized and will increase as the rates charged to the conference increase.
Here’s a look at actual rates for 2019 and projected rates for 2020 and 2021:
| Monthly Church Health Fee | 2018 Actual |
2019 Actual |
2020 Projected |
2021 Projected |
|
All plans and tiers |
$966 | $966 | $1,063 | $1,169 |
| Monthly Individual Contribution (participant only) | 2018 Actual |
2019 Actual |
2020 Projected |
2021 Projected |
| Preferred Provider Organization (PPO) B1000 P1 | $304 | $297 | $335 | $376 |
| Consumer Driven Health Plan (CDH) C2000 P2 | $260 | $230 | $262 | $297 |
| Consumer Driven Health Plan (CDH) C3000 P2 | $139 | $103 | $125 | $149 |
| High Deductible Health Plan (HDH) H1500 P3 | $252 | $222 | $254 | $289 |
| High Deductible Health Plan (HDH) H2000 P4 | $179 | $144 | $170 | $198 |
| Monthly Individual Contribution (participant +1) | 2018 Actual |
2019 Actual |
2020 Projected |
2021 Projected |
| Preferred Provider Organization (PPO) B1000 P1 | $602 | $650 | $729 | $816 |
| Consumer Driven Health Plan (CDH) C2000 P2 | $597 | $604 | $679 | $762 |
| Consumer Driven Health Plan (CDH) C3000 P2 | $270 | $260 | $308 | $361 |
| High Deductible Health Plan (HDH) H1500 P3 | $497 | $498 | $565 | $639 |
| High Deductible Health Plan (HDH) H2000 P4 | $347 | $338 | $392 | $452 |
| High Deductible Health Plan (HDH) H3000 P5 | $132 | $122 | $159 | $200 |
| Monthly Individual Contribution (family) | 2018 Actual |
2019 Actual |
2020 Projected |
2021 Projected |
| Preferred Provider Organization (PPO) B1000 P1 | $865 | $937 | $1,048 | $1,170 |
| Consumer Driven Health Plan (CDH) C2000 P2 | $793 | $804 | $904 | $1,015 |
| Consumer Driven Health Plan (CDH) C3000 P2 | $410 | $402 | $470 | $546 |
| High Deductible Health Plan (HDH) H1500 P3 | $721 | $728 | $822 | $926 |
| High Deductible Health Plan (HDH) H2000 P4 | $517 | $510 | $587 | $673 |
| High Deductible Health Plan (HDH) H3000 P5 | $222 | $214 | $267 | $327 |
Click here to download a printable pdf of these charts.
