by Mike Allen

One of the keys to managing the finances that God has given to us is to  take a fresh look regularly at various areas of our ministries. If we are not careful to keep tabs on every area of our budget, we can quickly waste valuable resources.

Medical costs seem to be on the rise every year at an increase of any where from 8–25%. This is one of the highest expenses in many ministries . It is also one of the most necessary expenses.

Our goal is to provide as much coverage as possible for our staff. They are on limited budgets; therefore, we have made it a priority to provide quality coverage for them and their families. We recently reviewed our health insurance plan and found that we could make a few minor adjustments, provide the same quality of coverage, add benefits, and save thousands of dollars.

Here are some suggestions to help your ministry:

1. Review your current plan and shop around for other plans that are offered in your area. If you are in an HMO, you may want to look at going to a PPO; or if you are in a PPO, you may want to look at going to an HMO. There are limitations and benefits to both.

2. Make minor changes in your current policy.

a. Increase your doctor visit co-pay.
b. Look at savings in prescriptions—generic versus brand drugs.
c. If you employ both a husband and wife, list them separately. It will actually cost you more to insure a spouse than an employee. If the couple has children, list them as dependents under the youngest parent.
d. Review your age limits for coverage. We previously had age 19 as a cut-off limit unless the child was a full-time student. Now, as long as the child is a dependent, he can remain on the policy until his 23rd birthday.
e. Look for a separate dental or vision policy. Many insurers do not require that you get these extras, so you may be able to find a less expensive carrier.

3. Begin self-insuring.

a. We have taken the amount of savings per month (nearly $1900) and placed this into a separate savings account. Our policy had increases in some medical treatments and doctor office visits, but we reimburse our staff for the increased amount so that their expenses are not increased.
b. We do this on a timely basis (petty cash in most cases) and we only give these reimbursements when given a receipt.   
c. Reimbursements are non-taxable if this is done based on a written policy. Contact Evangelical Council for Financial Accountability at www.ECFA.org for more information on Reimbursing Employee Medical Expenses.
d. In the first three months of this new program, we have reimbursed less than $500 total.

4. Stay in communication with your employees.

a. Be sensitive about how any change will affect your staff and do whatever you can to solve their issues.
b. Make sure that any change will not negatively affect any current treatment.
c. Be honest and up front when going through these changes. People will resist change. By guiding them through the process, you should be successful. This will make for a smoother transition and happier employees.
d. Be prompt and courteous on making reimbursements. Do not make them feel guilty about turning in reimbursements