The rising cost of health care was addressed in the Oct. 16 and Oct. 23 issues of The Alabama Baptist.
The Annuity Board echoes the plea of The Alabama Baptist editor to provide retirement and medical coverage as a church expense rather than a part of the minister’s salary.
The Annuity Board is making a concentrated effort to make church leaders aware of the increasing health care crisis.
It is a national problem. It is not just an Annuity Board problem. Industry increases have been in the double-digit range for the last several years.
Consultants are forecasting similar types of increases for the next few years.
Alabama, unlike most other states, has a statewide insurer that dominates the marketplace and highly influences provider discounts and premium rates. In other states there are multiple providers of medical coverage.
Alabama’s unique situation, unlike most other states, makes it especially challenging to compete on the affordability front.
As an advocate for its participants, the Annuity Board has suggested a three-pronged approach to the health care crisis.
First, the Annuity Board is doing what it can to hold down costs and design plans to meet its participants’ needs. While the national average for administrative expenses is 15 percent, expenses for Annuity Board plans are only 12 percent. The Annuity Board has designed all new PPO medical plans for 2004.
These plans have varying levels of deductibles and benefits. They have varying amounts for monthly rates.
Also, new plan flexibility will allow movement between health care products at re-enrollment without underwriting.
Second, to create a win-win situation, the Annuity Board is encouraging participants to improve their own health by living a healthier lifestyle.
More than one-half of last year’s medical claims and prescriptions were related to situations that could have been improved with healthier lifestyles.
Curtis Sharp
Annuity Board, SBC
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