Information Related to the Denominational Health Plan
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1 Adopted by the Executive Board of The Diocese of Southwestern Virginia August 16, 2014 The Diocesan Parity Policy for Health Benefits Resolution Establishing a Policy for Implementation of Denominational Health Plan In accordance with Title I, Canon 8 of the Canons of the Episcopal Church, it is hereby RESOLVED that: 1. Any and all health insurance coverage provided or paid for by the Diocese, parishes within the Diocese, Diocesan Missions, or other ecclesiastical organizations or bodies subject to the authority of the Diocese, for active and retired ordained persons or lay employees, shall be provided through The Denominational Health Plan. 2. Health insurance coverage shall be offered on an equal basis to clergy and lay employees who are scheduled to work a minimum of 1,500 hours annually, regardless of age or Diocesan organization. This means that eligible employees must be provided the same level of coverage at the same level of cost to the employee, regardless of whether the employee is ordained or lay. 3. Part-time employees (clergy and lay) who are scheduled to work between 1,000 and 1,499 hours per year are eligible to participate voluntarily, and employers are encouraged to provide coverage for such part-time employees. 4. Domestic partners will be eligible for coverage through insurance plans in this Diocese. 5. As a minimum, the employer will contribute 100% of the premium for single coverage (employee only) for the standard plan selected by the Diocese for each year (currently Anthem BCBS BlueCard PPO 90). 6. Prior to the beginning of the open enrollment period in each calendar year, the Diocese shall communicate through normal channels the terms of the health insurance plan that has been selected as the Diocesan standard plan for the next calendar year. 7. Employers are encouraged, if financially possible, to exceed the minimum standard of health insurance coverage for their ordained and lay employees. However, employers must provide parity between ordained and lay employees as set forth in paragraph 2, above. This means that if the employer chooses to provide more generous health insurance coverage to ordained employees, eligible lay employees must be provided the same level of coverage at the same level of cost to the employee. 8. Ordained or lay employees may opt out of coverage under the Denominational Health Plan if they have access to health insurance coverage through another approved source such as Medicare; Tricare; insurance coverage provided by a former employer; or a spouse's or domestic partner's health insurance coverage. 1
2 9. Where a congregation within the Diocese has an existing letter of agreement providing an ordained employee with health insurance coverage in excess of the minimum established in this resolution, the congregation must either: (a) provide the same level of coverage to eligible lay employees; or (b) renegotiate the letter of agreement to provide for a lower level of coverage, and then provide that same level of coverage for both the ordained employee and eligible lay employees. 10. Schools, camps and other organizations subject to the authority of the Diocese or affiliated with the Diocese, but not explicitly considered churches, are invited and encouraged, but are not required, to comply with this resolution. 11. All employers required to comply with this resolution shall take necessary steps to comply with the requirements of this resolution not later than January 1, And be it FURTHER RESOLVED that the Chancellor of the Diocese is directed to prepare an appropriate resolution, for presentation to the 96th Annual Convention of the Diocese, to amend the Canons of the Diocese to reflect the requirements of this resolution, and to state, expressly, that it shall be the duty of the vestry of each congregation of this Diocese to provide all eligible ordained and lay employees with at least the stated minimum level of benefits through the Denominational Health Plan. Information Related to the Denominational Health Plan The 76th General Convention passed Resolution A177, establishing a Denominational Health Plan (DHP) for the Episcopal Church, to be administered by the Episcopal Church Medical Trust (the Medical Trust). The plan would roll out gradually, with employers participating by January 1, The schedule provided a three-year time frame for domestic dioceses, parishes, and institutions to make decisions and manage change appropriately. The 77th General Convention established that corrective action must be taken before December 31, 2015, providing additional time to discern how parishes who have not yet achieved parity might best do so. The passage of the resolution came after three years of comprehensive research and analysis by CPG and the Medical Trust conducted under the leadership of David R. Pitts, former Chair of the Church Pension Fund Board of Trustees and the board s Healthcare Coverage Feasibility Study Advisory Group. During CPG s Church-wide Healthcare Benefits Feasibility Study, much work was done regarding benefits for Province IX,* with the result that, aside from Puerto Rico, 2
3 Province IX will continue to work on its health benefits solution with CPG, on a country-by-country basis. Resolution A177 can be found below. *Colombia, Dominican Republic, Ecuador, Honduras, Puerto Rico, Venezuela Resolution A177: Denominational Health Plan Resolved, the House of Deputies concurring, That this church establish The Denominational Health Plan of this church for all domestic dioceses, parishes, missions, and other ecclesiastical organizations or bodies subject to the authority of this church, for clergy and lay employees who are scheduled to work a minimum of 1,500 hours annually, in accordance with the following principles: 1. The Denominational Health Plan shall be designed and administered by the Trustees and officers of The Church Pension Fund, following best industry practices for comparable plans; 2. The Denominational Health Plan shall provide that, subject to the rules of the plan administrator, each diocese has the right to make decisions as to plan design options offered by the plan administrator, minimum cost-sharing guidelines for parity between clergy and lay employees, domestic partner benefits in accordance with General Convention Resolution 1997-C024 and the participation of schools, day care facilities and other diocesan institutions (that is, other than the diocese itself and its parishes and missions) in The Denominational Health Plan; 3. The Denominational Health Plan shall provide benefits that are comparable in coverage to those benefits currently provided by the domestic dioceses and parishes of this church; 4. The Denominational Health Plan shall provide equal access to health care benefits for eligible clergy and eligible lay employees; 5. The Denominational Health Plan shall provide benefits through The Episcopal Church Medical Trust, which shall be the sole plan sponsor for such benefits and continue to be operated on a financially sound basis; 6. The Denominational Health Plan shall have a church-wide advisory committee that is representative of the broader church and appointed by The Church Pension Fund, and such church-wide advisory committee shall receive an annual report about the status of The Denominational Health Plan; 3
4 7. For purposes of this Resolution, the term "domestic" shall mean ecclesiastical organizations and bodies located in the United States, including the Dioceses of Puerto Rico and Virgin Islands; 8. The Church Pension Fund shall continue to work with the Dioceses of Colombia, Convocation of American Churches in Europe, Dominican Republic, Ecuador Central, Ecuador Litoral, Haiti, Honduras, Micronesia, Taiwan and Venezuela to make recommendations with respect to the provision and funding of healthcare benefits of such dioceses under The Denominational Health Plan; and 9. The implementation of The Denominational Health Plan shall be completed as soon as practicable, but in no event later than by the end of 2012; and be it further Resolved, That Canon I.8 shall be amended as follows: Sec. 1. The Church Pension Fund, a corporation created by Chapter 97 of the Laws of 1914 of the State of New York as subsequently amended, is hereby authorized to establish and administer the clergy pension system, including life, accident and health benefits, of this Church, substantially in accordance with the principles adopted by the General Convention of 1913 and approved thereafter by the several Dioceses, with the view to providing pensions and related benefits for the Clergy who reach normal age of retirement, for the Clergy disabled by age or infirmity, and for the surviving spouses and minor children of deceased Clergy. The Church Pension Fund is also authorized to establish and administer the denominational health plan of this Church, substantially in accordance with the principles adopted by the General Convention of 2009 in Resolution A177, with the view to providing health care and related benefits for the eligible Clergy and eligible lay employees of this Church, as well as their eligible dependents. Sec. 3. For the purpose of administering the pension system, The Church Pension Fund shall be entitled to receive and to use all net royalties from publications authorized by the General Convention, and to levy upon and to collect from all Parishes, Missions, and other ecclesiastical organizations or bodies subject to the authority of this Church, and any other societies, organizations, or bodies in the Church which under the regulations of The Church Pension Fund shall elect to come into the pension system, assessments based upon the salaries and other compensation paid to Clergy by such Parishes, Missions, and other ecclesiastical organizations or bodies for services rendered currently or in the past, prior to their becoming beneficiaries of the Fund. For the purpose of administering the denominational health plan, The Church Pension fund shall determine the eligibility of all Clergy and lay employees to participate in the denominational health plan through a formal benefits enrollment process, and The Church Pension Fund shall be entitled to levy upon and collect contributions for health care and related benefits under the denominational health plan 4
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