GNJ’s Board of Pension and Health Adjusts the 2027 Healthcare Blended Rate

Background:

Driven by two consecutive years of significant HealthFlex premium increases (12% and 23% in 2026 and 2027 respectively), the budgeted blended rate billed to churches with Full Time Pastors was anticipated to increase to $33,200 in 2027. At the May 2026 Annual Conference, the Board of Pension and Health committed to research options to potentially reduce costs and/or otherwise reduce the blended rate.

2027 Summary:

A Task Force was formed and presented to the full board several potential cost-savings ideas (detailed below); unfortunately, none of them led to savings that would be realized in 2027, if at all. While some of these initiatives will continue to be explored for 2028, the only potential way to reduce the 2027 blended rate billed to the churches would be to shift some of the cost to participants. The board was faced with the exceedingly difficult decision to either do nothing, leaving the full responsibility for the premium increases on the church, or to shift some of this responsibility.

Following extensive discussion, prayer, and discernment, the Board voted at its June 24, 2026 meeting to reduce a small portion of the premium credit currently provided by the Conference, shifting more of the overall increased cost to participants beginning in 2027.

The realities of the US healthcare market, combined with GNJ’s high claim rates, indicate that our healthcare costs challenges will continue for the foreseeable future. As noted above and detailed below, there are still initiatives being researched for 2028; nevertheless, the board recognized that shifting responsibility to the participants is inevitable. Therefore, they voted to begin slowly in 2027.

The Board fully recognizes that this decision creates challenges for both our churches and our clergy. There simply was no perfect solution.

• Even with the reduction, the increase in the blended rate compared to 2026 is still sizeable and will be a challenge for some of our congregations; we encourage you to discuss options with your District Superintendent.
• The added costs for our participants, on top of the added pension responsibilities related to Compass, will be a challenge to some; reviewing the four available plan options and potentially shifting to lower-cost plans may be necessary.

Below is a summary of the changes:

• 2027’s blended rate decreases to $31,800 which is a $1,400 savings vs. the original $33,200; still a $4,700 increase over 2026.
• Participant Only: No change
• Participant +1: Increase of $325 annually
• Family Coverage: Increase of $891 annually

What can you do to control costs (personally and for the Conference)?:

• In November, the Open Enrollment to select your coverage will begin. Carefully review the four plans available (the C3000 and H2500 will be eliminated in 2027) and consider a lower cost plan. For example, moving from the B1000 family plan to the H5000 family plan saves nearly $12,000 for the year ($981/month); however, the H5000 plan has a higher deductible and other out-of-pocket expenses. If you do not frequently go to a doctor, this may be the best plan for you.  Use the available “Alex Tool” to help guide your selection based on your needs.
• Complete the “Health Check” and “Blueprint for Wellness” (BFW) before the August 31^st deadline.
  • HealthFlex participants and covered spouses both need to complete the Health Check to avoid a higher deductiblein 2027. Participants and covered spouses can also each earn $100 and up to 140 Wellness Credits for completing the BFW .
  • Individual deductible – avoid paying $250 extra
  • Family deductible – avoid paying $500 extra
  • The Health Check online health assessment identifies common concerns around nutrition, sleep, activity, stress and more. Based on your Health Check results, Personify Health has the ability to provide personalized recommendations for health coaching, Journeys and other HealthFlex well-being programs that can help you achieve your goals. Health coaching is provided by Personify Health at no extra cost to you.
• Take advantage of other wellness programs through Personify Health (https://personifyhealth.com/), or download the Personify Health app on your mobile device, earning you wellness credits along the way at no extra cost. Wellness credits can be redeemed for cash.
• Utilize other HealthFlex Resources for health coaching, mental health and Employee Assistance Program (EAP) to address stress on a variety of issues related to work, relationships, family life, finances, time management and personal changes.
  • Learn more here (copy and paste the link to your web browser if needed): https://qrcodes.pro/pXySW9?uq=eyJkZXZpY2VJZCI6ImE5NzkyMGMwLThkYTItNDIyOS1iN2ViLTNjMmMzMmE5NWNiMCJ9&utm_campaign=hfx_May&utm_medium=email&utm_source=newsletter
• Utilize low-cost options for healthcare as appropriate. For example:
  • MDLive vs. in-office visit with personal physician
  • Personal physician vs. urgent care or ER.
  • Generic vs. Name Brand drugs

Potential Cost-Savings Ideas Discussed:

• Individual Coverage Health Reimbursement Arrangement (ICHRA): Similar to the retiree plan, this would shift GNJ’s healthcare for active members to a fixed contribution towards healthcare in the marketplace vs. a group plan.
  • We are soliciting feedback from three other Conferences that have implemented this.
  • Wespath is also further researching this option.
  • Realistically, there is not enough time to effectively make this change in 2027.
• Adding another tier of coverage for Participant + family (excluding Spouse). This may be a cheaper alternative where the pastor’s spouse would have coverage through their employment or the marketplace.
  • Wespath (HealthFlex) currently does not have this tier; they are further researching.
• Shifting participants over 65 to the retiree plan. Across HealthFlex (all Conferences), the estimated savings is just over 1% but noting this might actually increase costs for the remaining group due to reduced pooling (high value claims are pooled across all Conferences). Further, the blended rate may increase with fewer participants as the # is calculated by taking the total GNJ cost divided by the # of participants. Lastly, it is still possible that participants under 65 would drive up the overall claim costs; we cannot assume it is the over 65 group.
  • The Task Force agreed that the potential savings did not justify the change, though Wespath will continue to explore this for the overall HealthFlex program.
  • Note, the group also discussed pre-65 participants, but this was quickly ruled out as Via Benefits (retiree program administrators) advised that this is not always an option in all areas of the country, potentially creating issues for some of GNJ participants.
• Incentive participants towards more cost-effective care, or disincentive from going to less cost-effective care such as a higher deductible for urgent care.
  • Wespath analyzed GNJ’s data and did not find anything specific we could do.
• GNJ requested the Return on Investment (ROI) analysis for Quantum Health Care Coordinators and other Well Being programs which are embedded in the premium costs, particularly as Quantum Health guaranteed savings.
  • Wespath is still completing the ROI analysis and noted that some benefits are not really measurable. While the premiums increased, it is possible the increase would have been more without Quantum Health and some of the Well Being programs. Nothing specific identified to impact 2027 costs.

In closing, I cannot overstate how carefully and prayerfully the Board approached these discussions. Every option was thoroughly examined, and every decision was weighed with deep concern for both our clergy and our congregations. While there was no ideal solution, the Board believes this measured approach is the most responsible path for 2027 while we continue pursuing additional long-term strategies.  I ask that you join me in praying for our nation’s leaders as they address the broader challenges facing healthcare in our country. Please also pray for our clergy and congregations as they discern how best to respond to these increased costs while continuing the ministry to which God has called them.

Blessings,

Rev. Elouise Hill-Challenger, Chair, Board of Pension & Health