ITASCA, IL — Recent research by Arthur J. Gallagher & Co. and its Religious Practice (Benefits Division), shows religious employers throughout the country are facing a common challenge: aligning benefits cost containment strategies with organizational goals.
So say the more than 1,800 organizations which have contributed to the 2014 Benefits Strategy and Benchmarking Survey. The survey found that religious organizations are:
Promoting health. Among respondents, 36% offer a wellness program.
Are changing contributions. In 2014, 42% increased employees’ plan contributions.
May be changing their approach. In the next three years, 14% might move to a defined contribution healthcare arrangement.
Align an engaged workforce with your mission
The survey also showed that among the responding religious organizations:
- 100% are committed to providing health benefits, yet …
- 14% have quantified the cost of healthcare reform. Meanwhile …
- 70% view controlling view controlling benefit costs as a top overall challenge.
They’re optimizing design. Among respondents, 28% have grandfathered medical plans.
They’re planning ahead. The survey showed 41% of plans will trigger the “Cadillac tax” in 2018. According to a major healthcare provider’s website, beginning in 2018, a 40-percent excise tax will be imposed on the value of health insurance benefits exceeding a certain threshold. The thresholds are $10,200 for individual coverage and $27,500 for family coverage (indexed to inflation). The thresholds increase for individuals in high-risk professions and for employers that have a disproportionately older population.
Navigating the path ahead
With a mission to serve, advise and make a difference — by reclaiming dollars for ministry and reducing risk — Arthur J. Gallagher’s Religious & Nonprofit Practice advisors work as brokers and consultants with more than 24,000 nonprofits around the world. They can be contacted for more information and guidance on holistic solutions to drive your church’s mission forward.