RCA Insurance Plans Transition and Introduction to the Reformed Benefits Association May 2013

Consistories may stop offering group medical insurance to ministers, staff, and their families.  “send” minister/staff to federal marketplace;  adjust minster/staff compensation;  minister/staff may qualify for tax credits;  BOBS stipulates minimum coverage;  Consistories and Classes may seek a group medical plan from an area provider.  Consistories continue to offer RCA group medical insurance through the Reformed Benefits Association. 2

 RBA–  RBA–501(c)(3) corporation formed by the RCA Board of Benefits Services and the Christian Reformed Church in North America. .  RBA–  RBA–offers group insurance to: RCA & CRC churches, institutions, assemblies, and agencies; unaffiliated religious not for profit entities; expands to include other denominational partners.  RBA–  RBA–controlled by a board of trustees elected from RCA/BOBS and CRCNA/BOT.  RCA/CRCNA–RBA  RCA/CRCNA–transfer insurance plans to RBA effective January 1,

 The Affordable Care Act changed things:  Many RCA churches and other employers may “send” ministers and staff to the ACA marketplaces.  Reduced population in RCA plan = increased costs and a death spiral.  Retirees’ participation – declined 30% due to high cost for RCA Supplemental Medicare.  General Synods have asked repeatedly that BOBS consider partnering with another denomination. 4

 RCA large employers (over 50 FTE) need to offer group medical insurance or pay a penalty.  Small employers/RCA churches are anxious about the Affordable Care Act and the ability of the “marketplaces” to deliver quality insurance and customer care.  RCA retirees are looking for an affordable plan.  “Marketplace” plans will not all offer some of the products available through the RCA.  RCA/BOBS still needs to offer group life & LTD for ordained ministers.  Wellness, dental, vision, AD&D, LTC, supplemental and dependent life are highly valued and could be continued if BOBS found a partner. 5

 The Book of Church Order (Formulary #5: Call to a Minister of Word and sacrament) states:  “…We also promise to pay the stipulated contributions to the Reformed Church retirement plan and the premiums for group life insurance, long-term disability insurance, and medical insurance for the minister as offered by the Board of Benefits Services…” 6

 General Synod 2013 will consider amending the Formulary: We also promise to pay the stipulated contributions to the Reformed Church retirement plan and the premiums for group life insurance, and long-term disability insurance, and medical insurance for the minister as offered stipulated by the Board of Benefits Services, and to reimburse the minister the premiums paid for the medical insurance for the minister and the minister’s immediate family,* which must meet or exceed the minimum medical insurance coverage as stipulated by the Board of Benefits Services, and further, to provide this same medical insurance for your family except where the minister or the minister’s immediate family* has medical coverage through a spouse’s employer-sponsored group plan as long as you continue to be the minister of this church… 7

 Yes. The 2013 General Synod will consider the amendment. If it passes it will be sent to RCA classes.  2/3 of RCA classes must approve the amendment by March 31,  If it receives 2/3rds classis approval the 2014 General Synod votes on “the declarative act.”  However…with the transfer of RCA insurance to RBA, the Board of Benefits Services is no longer offering medical insurance.  The “heart” of the BCO change is to request BOBS to stipulate minimum standards for minister medical insurance going forward. 8

 The Insurance reserve =$9million.  Funds will pay for:  claims incurred in the last quarter of 2013 but not recorded (IBNR) until 2014 when we are no longer collecting premiums in BOBS.  transition operations to RBA and to establish a new reserve in an RBA trust with JP Morgan/Chase.  remaining reserve will be established as an endowment with income used for administrative/program costs of benefits for RCA current and future participants (not CRC). 9

 The board instructed the insurance office to stop billing the CoC premium effective July 1, 2013 on the premise that the RCA plan will no longer be mandatory for ministers.  No, we can’t refund prior CoC premium payments. It’s against the law.  CoC participants will not have access to the RCA wellness programs offered this fall.  We may offer wellness programs to all RCA ministers in  Churches will continue to be billed for group life and LTD – required coverage for ministers. 10

 Current group medical – both the $750 deductible PPO plan and the HDHP plan;  Group life, supplemental life, dependent life  Long-term disability; Dental; Vision; AD&D  RCA Wellness programs (and incentives!)  LTC participants will be invited to “port” to the carrier (UNUM) and continue coverage on their own;  RCA Retirees may have access to a new Medicare Advantage plan to replace the current supplemental Medicare plan. 11

 Health Care is changing; BOBS is trying to adjust how it fulfills its responsibilities within the Covenant of Care in this new, emerging, context.  RCA Insurance Round Table – participants believed that the opportunity to take advantage of new options: a) respects the covenant; b) is wise stewardship of the church’s resources (local and denominational).  Restoring responsibility for the appropriate care of ministers, their families, and staff through wise insurance choices by consistories, with classis oversight, seems a proper corrective to our polity.  The “Covenant of Care” document was not given only to BOBS by General Synod. It was given to all of our assemblies. 12

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