(PNS) With health care costs continuing to rise annually by nearly 10 percent, the Board of Pensions (BOP) of the Presbyterian Church (U.S.A.) has voted to raise its Medical Plan dues by one-half percent, to 19.5 percent of “effective salary.”
The increase, which brings total dues for medical plus pension benefits to 31.5 percent, is effective Jan. 1, 2007. The board approved the increase at its July 13-15, along with subscription increases in related health care programs, such as the Affiliated Benefits Plan (an 8.8 percent increase) and medical coverage for seminary students (an increase commensurate with the Medical Plan dues increase).
Projections for the Medical Plan — which pays out about $150 million in benefits annually — are based on an 11 percent annual increase in health care costs. Recent results have been marginally better, said the Board’s longtime medical actuary John Cookson of Milliman, Inc. He predicted, however, a deficit by 2010 if no action was taken.
The BOP board also voted to apply for participation in the Medicare Subsidy Program, a federal program tied to the new Medicare prescription drug benefit. The board is projected to receive about $6 million in Medicare subsidies this year and $6.5 million in 2007, funds that are a “pass through” to BOP Medicare Supplement subscribers in the form of lower premiums for their coverage.
