The annual renewal date for medical, dental and vision benefits through the ARPC Group Plan (“the Plan”) is August 1 of each year. Forum Benefits is our benefits advisor. Together, Forum Benefits and the ARPC Board of Benefits have worked to maintain a generous medical plan design while simultaneously trying to keep costs low for ARPC churches and entities.
Medical trend increases have continued to outpace what is already high inflation. The benchmark has been around 7% annually, while the rates for the Plan have only increased 4% annually since 2015. Last year, the Board of Benefits voted to utilize the reserve balance to help offset the needed increase for the August 2022 to July 2023 plan year. Unfortunately, the Plan is not able to take more funding from the reserve to cover the current renewal increase.
The current Copay plan has an actuarial value of a “Platinum” plan design. We have made very little plan design changes over the years, which has left us with an unsustainable plan outside of the market norms. The Board has taken first steps to update the Traditional Co‐pay medical plan design, keep the High Deductible (“HDHP”) plan design, so that we can hold the increase of overall premiums for the Plan to 15% to properly fund anticipated claims. The Plan changes still maintain a very generous offering that is above the market norm. The open enrollment memo is attached with more information.
These employee benefits are a part of the total employee wellbeing package that the ARPC offers. It is important to note that the amount of premium that a church pays towards the cost of their employees benefits not only those employees and their families, but to the extent that all participate, there is a benefit to the entire group and ministry.
Additionally, the decision was made to move future renewal dates of the Plan to a January date. Currently, the life and disability plans run on a calendar year basis and renew each January. The medical, dental & vision plans have always renewed in August of each year; however the medical deductible period runs calendar year. To align all benefit renewals and deductible periods, the Board voted to move the renewal date of the Plan to January, starting in January 2024. This also allows Forum to get information to all employees in the Fall, rather than the summer when some locations are out on summer break. In order to align these plans, we will renew the plans again in January 2024.
Click here to watch the webinar which offers more explanation.