Is your ministry exploring a self-funded health plan as an alternative to traditional health coverage? Perhaps you’ve heard that it could cut costs and provide exemptions from certain Affordable Care Act (ACA) provisions. GuideStone® encourages ministries to carefully evaluate the risks and rewards before making a decision that carries an extensive impact.
Exactly what is a self-funded health plan? And what are the pros and cons? To navigate these questions, explore our white paper, The Role of Self-Funded Health Plans in Ministry Health Coverage. Here are some highlights you’ll find.
A self-funded health plan is a type of health coverage in which the employer assumes responsibility for paying employee claims for health care expenses rather than paying those costs through premiums paid to a private insurer.
Employers that establish a self-funded health plan accept responsibilities for all aspects of the employee health plan, including:
When considering the responsibilities required for self-funding, you may want to ask:
If a self-funded employer encounters catastrophic claims or an excessive number of claims, the reserves may not be enough to cover them. Many self-funded employers purchase stop-loss insurance to protect against claims exceeding their reserves.
GuideStone is committed to offering budget-friendly, quality health coverage in alignment with biblical values. As ministries of all sizes band together under GuideStone’s plan, they can enjoy the benefits of self-funding without putting their organizations in financial jeopardy.
Because the GuideStone plan pays the claims, the ministry does not need to purchase stop-loss coverage. The risk of catastrophic claims is calculated into the rates and distributed across all employers.
Self-funded Health Plans | GuideStone Church Plans | |
Financial risk | Employer assumes the risk | GuideStone assumes the risk |
Risk is based on | Only the ministry's employees | Multiple ministries of all sizes, which helps spread out the risk |
Responsible for plan administration and claims management | Employer (could contract out to a third-party payer) | GuideStone |
Responsible for funding for claims payment | Employer (may require hiring experts, like an actuary and investment advisor) | GuideStone |
Responsible for IRS reporting | Employer | GuideStone |
Responsible for creating a medical network | Employer | GuideStone |
We understand that you are searching for ways to provide quality benefits while being a good steward of your ministry’s budget. Choosing a group health plan is an important decision that has far-reaching financial repercussions for your ministry and employees. For more information on the benefits of GuideStone health plans, 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.