Planting a church comes with a mile-long list of tasks and decisions that can help or hinder the success of your church. Where should we meet? What support do we have? How do we get the word out?
Often, benefits take a backseat to the hustle and bustle of planting a church. And although sharing Christ and growing a healthy ministry is — and should be — your driving priority, establishing a solid financial structure is a foundational element that helps keep your ministry moving and resilient.
When stacked against the other decisions to make for your church, health coverage seems like just another checklist item, but it is so much more than that.
At GuideStone®, we acknowledge and understand that limited resources and finances are part of church planting ministry, but we also want to give you a head start on crafting your benefits strategy as early as possible. As Paul reminds us, “… let us work for the good of all, especially for those who belong to the household of faith.” Galatians 6:10 (CSB)
With all this in mind, here are five helpful tips as you explore your options to find the best health plan for your church plant and employees.
When deciding how to structure your benefits, consider the tax implications. Employer-provided group health coverage is the most well-known and widely used strategy, but other alternatives are available, including offering a stipend for employees to purchase an individual health plan.
While stipends are less expensive for the church, they are not considered true health benefits by the IRS. Because of this, stipends are considered additional income and are taxed at the employee’s highest tax bracket. This cuts down on the amount of money your employees have to afford adequate coverage and what is left for their living expenses.
On the other hand, employer-provided health coverage comes with a valuable financial advantage for your employees: It is tax-free, allowing that portion of your church budget to go towards its intended purpose — health care.
Learn more by checking out our compensation planning resources for your church.
The primary budget line item that informs most health coverage decisions is the monthly cost or premium; however, there are other out-of-pocket expenses to consider that could have a huge impact on the overall price tag of the plan — especially for your employees.
It’s a good idea to consider the deductible, co-insurance and maximum out-of-pocket (MOOP) that may be incurred under a plan. Watch this informative health plan video to learn more about these and other important terms.
The plan that is best suited for you will depend on how you utilize health coverage.
Lower deductible plans usually come with higher monthly costs, but this arrangement may end up saving money if it allows a high utilizer to reach co-insurance faster. Make sure that your plan fits your health care needs as well as your budget.
In addition to the all-in cost of the plan, make sure your plan includes affordable access to the care your employees need.
The cost of out-of-network care is often substantially higher than staying in-network, so evaluate how comprehensive a plan’s network is and if major hospitals and popular providers in your area are in-network. If the network is narrow, it may cause you to stop seeing your preferred providers or incur large bills if you visit an out-of-network facility.
Another area to evaluate is prescription coverage. Some plans include minimal prescription coverage and are not the best option for individuals on maintenance medications. Others offer discounts on medications received by mail, so taking advantage of that could save you money.
Lastly, see if your potential plan includes low or no-cost telemedicine access to help you cut down on costs for non-emergency situations.
While health plans are a major benefit, adding options beyond health coverage can make a huge difference for your ministry.
As Christians, our beliefs have implications that extend to every facet of our lives, even the choice of health coverage. Many plans that are widely available have provisions that touch on moral issues. As a ministry employer, take a moment to see if a health plan’s details are compatible with the stance you take on issues such as life and family.
In today’s world, compromise seems increasingly unavoidable, but with GuideStone, it’s possible to maintain biblical convictions without compromising the quality of your health coverage.
We are here to walk alongside your church and provide biblically minded guidance through the many decisions you will face. We believe that when the body of Christ is healthy, it’s free to transform the world, so we provide coverage made for ministry, including health plans, life coverage, accident coverage and property and casualty insurance.
Have questions, or are you ready for a free quote? For more information, 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.
This article was originally published at Baptist21.com.
GuideStone welcomes the opportunity to share this general information. However, this article is not intended to be relied upon as medical advice, diagnosis or treatment.
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