Top 5 Questions About Health Plans for Church Plant Employees

Church planters face a mile-long list of tasks and decisions. Where should we meet? What support do we have? How do we get the word out?

Selecting a health plan for church plant employees is an essential decision that can help retain staff and provide for their well-being. Consider these top five questions to ask as you explore health coverage options.

1. What benefits strategy best maximizes tax benefits?

When deciding how to structure benefits, compare the tax implications of employer-provided group health coverage with those of stipends.

• Employer-provided group health coverage: This is the most well-known and widely used strategy, offering a valuable financial advantage for your employees. It is tax-free, allowing that portion of your church budget to go toward its intended purpose — health care.
• Stipends: While these are less expensive for the church, they are not considered true health benefits by the IRS. Stipends are considered additional income and are taxed at the employee’s highest tax bracket. This reduces how much money your employees have to afford adequate coverage and cover living expenses.

Download a complimentary Compensation Planning Guide to learn more about providing employee benefits.

2. What is the all-in cost?

The monthly cost of a health plan is often the sole deciding factor for coverage. However, other out-of-pocket expenses could significantly affect the plan's overall cost — especially for your church plant employees.

• Out-of-pocket costs: Consider each health plan’s deductible, co-insurance and maximum out-of-pocket (MOOP) to determine how much your employees could potentially pay out-of-pocket for health care costs.
• Lower vs higher deductible: Lower deductible plans usually come with higher monthly costs, but may end up saving money if they allow an employee with high medical needs to meet their co-insurance sooner.
• Plan usage: The plan best suited to your church will depend on how employees generally use health coverage, based on their medical needs and life stage.
  • Do employees frequently visit health care providers?
  • Do employees take maintenance medications?
  • Do employees anticipate high upcoming medical expenses?

3. Which types of care are covered?

In addition to the all-in plan cost, make sure your plan includes affordable access to the care your employees need.

• Prescription coverage: Some plans offer limited prescription coverage and may not be suitable for employees who rely on maintenance medications. Other plans may offer cost savings for mail-order medications.
• In-network care: Are local hospitals, preferred providers and specialists in-network? Narrow networks can limit provider choice and lead to higher out-of-network costs.
• Telehealth: Low or no-cost telehealth access can help reduce costs for non-emergency medical needs.

4. What other coverage needs should be considered beyond a health plan?

While health plans are a major benefit, adding options beyond health coverage can offer valuable care and resources for employees.

5. Do my insurance and health plans align with my biblical values?

As you evaluate health plans, consider whether the plan aligns with biblical values. Does it value the sanctity of life, align with God’s design for men and women, and enable members to be good stewards of their health? GuideStone offers health plans that align with biblical values without compromising the quality of health coverage.

Why offer insurance and health plans?

Offering insurance and health plans demonstrates care to church staff, helps retain talent and promotes well-being, so employees can be at their best as they serve the Lord. Offering access to care can help staff stay resilient, ultimately helping a church plant maintain steady growth.

A Firm Foundation for Church Plants

We are here to walk alongside you as you make decisions that will affect the future of your church plant. For more information on insurance and health plans made for ministry, contact us at Insurance@GuideStone.org or 1-844-INS-GUIDE (1-844-467-4843), Monday through Friday, from 7 a.m. to 6 p.m. CT.

GuideStone welcomes the opportunity to share this general information. However, this article is not intended to be relied upon as legal advice or medical advice, diagnosis or treatment.