The stories get told. The images are painted. The judgments
are made. The opinions are formed. All of this is happening with bold voices
and the heir of absolute certainty. The predictions of catastrophe are so vivid
that they seem real sometimes; but are they? Do we have any facts about how
Obama Care has affected the lives of people we know? What has really happened
so far to real people with a real stake in the outcome? Maybe you don’t know
anybody yet that has had to make a decision or a change; or do you?
If you were at the United Methodist Church of Merced’s
annual Church Conference last Tuesday, you witnessed Affordable Health Care
making a difference. This conference is where the church makes decisions on leadership,
celebrates the ministries that God has empowered us to carry out, and votes on
the planned compensation for pastors. Lately, churches throughout the country
come to these meetings in crisis mode. Pastors are not just given cash for
their service. They are also receiving health care coverage. When the price of pastoral leadership
increases faster than the resources of the church grow, the churches need to
choose between funding a pastor and funding programs that change lives in our
communities. The crisis comes when costs enter the equation that is uncontrollable,
unpredictable, and unreasonable. That is a perfect description of health care
cost in recent years. It is important to note that if health care was
affordable it would make a difference to your pastor, to your church, to your
community, and to you.
Over the last ten years, the cost of health care coverage
has spiked every year. In the last four years, I have been eligible for the
conference health plan. The price to
cover a family of three for one year on the conference plan was $17,000 in
2009. By 2013 the conference plan had increased to over $27,000 and the
coverage benefits were significantly reduced. The conference plan in 2014 is
going to be $34,000 less ($2000 because the annual conference is committing to
spend down its discretionary budget to ease the crisis). No other expense has doubled over the last
five years. No significant numbers of donors have doubled their offerings in
the last five years. The economy is growing at a rate close to 2% per year
(good news, unless expenses are growing at 10% per year). This spike in costs
is the primary reason for crisis at charge conferences throughout our
connection, but our charge conference was a joyful celebration; wonder why?
The reason that we had a stress free conference has a lot to
do with the fact that affordable health care makes a difference. We live in California and California has done
an excellent job of preparing for the advent of Affordable Health Care. The
conference board of pensions was well equipped to guide the pastor and the
church leadership to understanding the effects of Obama Care. The Covered
California website at https://www.coveredca.com/
is working extremely well – I feel informed about a wide variety of options to
purchase health care. I am confident that the coverage is through reputable
agencies and that the doctors in the networks are every bit as competent and
available as they were last year. One of
the options is to have the exact same plan as I had last year with no increase
in price. The facts are that the new program looks like an absolute benefit to
me, my family, my church, and my community.
The mainstream news is embracing images of apocalyptic
failure; while I am experiencing reasons to celebrate, and by extension, so are
you. The subsidy program is significant. It is based on Aggregate Taxable
income, which has wonderful incentives. For instance, when aggregate taxable
income is reduced, the price of health care is reduced. This means that if your
pastor chooses to put pre-tax money away for retirement, the price of the
families insurance goes down, so does the tax burden at the end of the year. So
the program makes it possible for a real middle class income earner to save
money on health care today, save money on taxes at the end of the year, and
save money for retirement in the future. Why is this story not in the news?
Church leadership is doing a happy dance too. We were
bracing ourselves to take another significant hit to the budget – an $8,000 to
$10,000 increase in healthcare expenses. To give you perspective, the total
amount budgeted for social concerns and program expenses in 2013 was $9000. This
is the money that supports CATCH (our connection with community children), elder
services, music, and hospitality ministry. An increase in staff expenses of $10,000
would dramatically affect our ability to either operate our church in the way
we are accustomed or our ability to impact our community. Even the wonderful stewardship
drive (Committed to Christ) would have the wind removed from its sails. Instead
of negotiating this unbearable expense, the church is relying on the new health
Insurance exchange to provide next year’s coverage for the pastor at last year’s
prices. That’s right; our predicted impact of Obama Care is a net benefit to
the church budget for 2014 of an estimated $10,000.
Enjoy God,
Pg