2010 Health Benefit Rates and Comment final letterhead

Western North Carolina Annual Conference The United Methodist Church Post Office Box 18005, Charlotte, NC 28218 | 3400 Shamrock Drive, Charlotte, NC 28215 704.535.2260 x 129 | 800.562.7929 (NC) | 704.537.7710 Fax | www.wnccumc.org William C. Wyman, Jr. Treasurer bwyman@wnccumc.org To: Church Leadership and Clergy Participants Fr: Health Benefits Committee of the Board of Pension and Health Benefits 2010 Health Benefit Rates and Comment At the Health Benefit Committee meeting on June 22 it was determined that again this year we must have an increase in rates for both the Active and Retiree Health Plans. The Active Plan increases are caused by continuing increased claims costs and usage by the participants. The increase in the Retirees Health Plan is primarily caused by a significant reduction in support by two endowment funds who support this plan and who have seen their asset values greatly reduced during this economic downturn. REMEMBER THAT THESE PLANS ARE SELF INSURED BY THE CONFERENCE AND THERE IS NO INSURANCE COMPANY INVOLVED IN THE RATE SETTING PROCESS. PRIMARY PHYSICIANCARE IS SIMPLY OUR CLAIMS ADMINSTRATOR AND RATES ARE BASED UPON THE ACTUAL USAGE OF THE PLAN BY CONFERENCE MEMBERS AND THEIR DEPENDENTS. THE ACTIVE PLAN - During the last 12 months claims costs paid by the Active Plan have increased by more than $890,000 to push total claims paid for the year to $10,568,374. The ...