Covenant News

No Rate Increase for Bethany Benefit Participants

CHICAGO, IL (October 29, 2005) - There will be no increase in 2006 insurance rates for the Bethany Benefit Service plan administered by the Evangelical Covenant Church (ECC), it has been announced.

"Rates will remain exactly the same as in 2005," reads an update report distributed to plan participants last week. The Covenant benefit program is available to employees of participating Covenant churches, regional conferences, conference centers, camping ministries, Covenant ministries, and pastors who work for voluntary employers of the Covenant Pension Plan. Coverage includes medical, life, dental, long-term disability, and prescription drug benefits.

The decision appears to run counter to a general trend by insurance carriers to increase rates - many employers expect health insurance premiums to increase an average of 9.2 percent this year, says Elliott Johnson, ECC director of finance. "We work with a number of other denominations, representing a pool of more than 250,000 employees, which allows us to negotiate more favorable rates and coverage," Johnson says in explaining how the Covenant avoided a rate increase next year. He also cited a favorable claims experience rating on the part of plan members.

Another positive factor is the continued growth in enrollment as a result of additional Covenant churches transferring into the Covenant plan, due in large part to the favorable rates and coverages.

"Because we are able to hold our rate and experience no rate increase, local Covenant churches and conferences will collectively save about $1 million that otherwise would have gone to pay for health insurance rate increases, money that instead can be directed to other ministry needs," Johnson notes.

Covenant churches that are not currently part of the Bethany Benefit Service plan and have an interest in joining should contact Randall Jordan by email at randall.jordan@covchurch.org or by telephone at 773-907-3358.

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