Board of Medical BenefitsDirect Invoice Listening SessionPresented by
Reverend Curtis BrayChair-Board of Medical Benefits
David Stotts, CPATreasurer/Conference Benefits Officer
Larry Davis, MBA CCABenefits Administrator
Mississippi Conference Mission Statement
The Mississippi Annual Conference-empowered by love, generosity, justice, and apprenticeship-forms spiritual leaders, faith communities, and connections so more disciples of Jesus Christ transform the world.
Developing Spiritual LeadersCabinet and Senior Staff and
other Conference Leaders are working to become stronger Spiritual Leaders
Loving, Learning, Leading
You will see this modeled in conference meetings
LovingWhat Glory Sightings have you
seen lately
Where have you witnessed God at work in your life
Prayer
LearningNow we will move into the
Learning Time
Open EnrollmentMedical PlansDental and vision if on one of the health plans
FSA-HSARetiree open enrollmentWellnessHow to enroll
What do we want to accomplish today?
Why should we direct invoice medical insurance?
What is our current reality?
What method is the Board of Medical Benefits Proposing for Direct Invoice?
What do we want to accomplish today?
So how does this really work?
How do we maintain the flat budget promise in 2016?
Where do we go from here?
Why should we direct invoice medical insurance?
We have learned that direct invoice has raised the pension collection rate from average 90 percent to 98%
Rising costs of pension were stabilized
Direct Invoice allows the local church to control their cost of having a pastor
Why should we direct invoice medical insurance?
Direct Invoice enables mission shares to be totally for mission and ministry
2008 Adopted a 4 Phase Plan of Direct Invoicing-Now is the time to explore the process
What is our current reality?Action at the 2013 annual conference stated
that beginning in 2014 churches with less than full time pastors were not apportioned-a GREAT saving to 267 churches
In 2014 ACA required employees working 30 hours a week or more to be offered health insurance
With that requirement, a pastor earning 75% of the local pastor minimum salary is eligible for conference insurance. So for 2015 mission shares, that was based on the 2014 $19,954. This added back 166 churches.
What is our current reality?Entities other than churches that have
employees eligible to participate in the health insurance pay $8,184 annually because they do not pay mission shares.
◦ Direct invoices will not change the billing to these entities or the way in which they share the cost with the participants
◦ Cost sharing with the participant is a decision of each salary paying entity
◦ So we understand from this that the Connectional spirit is alive because churches paying less than $8184 are receiving benefits form the other churches-611.
What method is the Board of Medical Benefits Proposing for Direct Invoice?
Proposal is to use a percentage of plan compensation-same base as Pension Billing
Phased in over a 3 year period beginning in 2016
For projection purposes, 11.5% is used which would be what would be direct invoiced in 2015?
So how does this really workThere will be an amount in mission shares
for the active medical plan on Line 7 and a direct invoice for 2016-2017. Beginning in 2018, there will be full direct invoicing for benefits. Line 7 Mission
SharesMedical
Direct Invoice Total2015 100.00% 100.00%2016 66.67% 33.33% 100.00%2017 33.33% 66.67% 100.00%2018 0.00% 100.00% 100.00%
Flat Budget Promise in 20162016 Flat Budget will be honored Flat budget is set at $15,600,000 in
2016◦Apportioned Mission Shares will be
$14,417,500 ******************************************************
Total $15,600,000Less1/3 of Line 7 $ 1,182,500 (Direct Invoice Amount)
Where do we go from here?Hear your thoughts on the direct
invoice for Medical Insurance-Line 7 and billing method
BOMB will meet back to adjust the plan based on the listening sessions-We will listen and consider all comments made
Prepare the presentation for announcement in the early spring of 2015 including the percentage to be applied on the plan compensation for direct invoice
LeadingHow can you go from here and
model spiritual leadership through leading