Bill has been a dedicated member of his Ft. Worth church for years. He is now part of the finance team and they are facing an enormous challenge. His church has three hardworking staff members, including the pastor, and they want to do something to help them with healthcare costs. They know the staff using ACA Marketplace Exchange policies is starting to take a toll on them with the limited network coverage.
However, a traditional group health plan is simply out of reach for their budget. Bill’s looking for meaningful ways to offset healthcare expenses without breaking the bank or the church's budget. He is beginning to question if affordable options even exist. Insurance premiums have gone up and health benefits have come down.
Just like Bill’s church, many small churches in Texas are in the same situation. Fortunately, there are alternatives that allow churches to provide support for health care costs without the heavy cost of a traditional group health insurance plan. True Texas Church Insurance has found three options that can make a real difference for Texas churches and their employees.
Small Churches and Health Coverage Rules
For churches with fewer than 50 full-time equivalent employees, like Bill’s, the law doesn’t require providing a traditional insurance plan like mosta employers. But many small churches still want to offer some kind of support for medical care to their staff as part of their ministry. While some churches have looked into Health Reimbursement Arrangements (HRAs) or High Deductible Health Plans (HDHPs), these might not be the best fit for everyone. Especially if you are looking to minimize out of pocket costs for the staff members. If your church is in need of something different, here are three alternative options that can make a big impact.
Health Sharing Ministries
One of the options Bill explored was joining a health share plan. These programs, often faith-based, allow members to share each other’s medical costs through the health share program. It is is important to note that they aren’t actually insurance, though they do help provide support in case of larger health care expenses. Similar to health insurance coverage, in a health sharing ministry, church staff would contribute a set amount each month. Part of this can be paid by the church, or not. This share amount goes toward covering medical needs across the network of members. This can be a meaningful option, as these ministries are often based on shared values and beliefs that align with the church’s mission.
For small churches like Bill’s, the lower monthly costs of health sharing ministries can make them a practical and affordable choice. However, it’s important to note that health sharing ministries usually have specific membership requirements, which may include guidelines around lifestyle or health practices. If your pastor or staff has pre-existing conditions, they may not cover the medical care for those much needed additional costs. For churches that meet the membership guidelines, though, health sharing can provide valuable peace of mind and financial protection.
Private Catastrophic Health Insurance
Another option Bill’s church considered is private catastrophic health insurance. These catastrophic options are designed to cover major medical expenses, such as surgeries, hospital stays, or severe illnesses. They don’t usually cover everyday care like doctor visits or prescriptions, which helps keep premiums low. Instead, these policies focus on covering catastrophic health care events that could otherwise lead to significant out-of-pocket medical expenses.
Bill was seeing how catastrophic health insurance could be a smart way to give staff protection against unexpected medical events without the high price tag of a comprehensive plan. The staff members would still be responsible for their routine healthcare costs, but they’d have financial protection if something serious happened to create major expenses. For churches with limited resources, this balance of low premiums and essential coverage for emergencies can provide meaningful support without overspending.
Supplemental Health Plans
Bill’s third option was to provide supplemental health plans to be used in conjunction with the Exchange health insurance plan they had been leaning on. Unlike full health insurance policies, supplemental plans provide specific financial benefits in certain situations, such as accidents, critical illnesses, or hospital stays.
Supplemental protection plans often offer cash benefits or reimbursement for specific medical events. This cash payments help offset the out of pocket cost of unexpected healthcare expenses. They’re often used to “fill the gaps” that other healthcare options don’t cover. It can also be used to eliminate deductibles for those plans.
Bill saw that supplemental health plans add a layer of financial security by providing benefits for targeted expenses. These plans should be used alongside an individual health plan where that is catastrophic, health share plan, or traditional health plan creating a more comprehensive safety net. While these individual plans should be used in tandem, they’re a budget-friendly way to protect against unexpected medical bills.
How to Get Coverage and Find the Right Fit for Your Church
As Bill found out, choosing the best option for his church depends on a few factors: the budget, the healthcare needs of his staff, and how much support they want to provide. Each of these options—health sharing ministries, catastrophic health insurance, and supplemental health plans—has its own benefits and trade-offs, and understanding what works best for your church can save both time and money.
If you’re considering these options, connecting with an experienced church insurance specialist can help. A knowledgeable advisor can assess your church’s specific needs and recommend the right combination of coverage options to provide meaningful healthcare support options for churches without overspending.
True Texas Church Insurance, offered only through Insurance For Texans, provides customized solutions to help churches like yours find the right balance. Our specialists have worked with churches across Texas to create tailored plans that protect both the church and its employees in a way that fits each church’s unique budget and ministry.
Click the button below to learn more about health coverage alternatives for your church. Let us help you protect your staff and strengthen your ministry in the most effective way possible.