The Louisiana Annual Conference (LAC) offers what is called a self-funded health plan that is administered by Blue Cross Blue Shield of Louisiana (BCBS). This means the Louisiana Conference assumes the financial risk associated with providing health care benefits to its clergy and their families and conference employees. Rather than paying a fixed premium to an insurance company, which, in turn, assumes the financial risk, the LAC, through our agreement with BCBS pays for medical claims “out of pocket” as they are incurred.
Premiums and rates for the LAC plan are determined by plan utilization every year. Every year we strive to collect what we need to pay for the plan and often our collections have been less than the payments for claims. Because of this, it is important for participants to be wise health care consumers since participants are directly responsible for the costs associated with the plan.
Additional strains on the plan are a reality with the Affordable Care Act. Taxes and fees are now due on the plan and additional taxes are looming in the upcoming years. A Health Care Task Force will be considering what action should be taken for the future offering of Health Care by the LAC.
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