On Tuesday, March 23, President Obama signed the Patient Protection and Affordable Care Act into law. But while our nation may have a new healthcare law, many people are confused and unsure of what healthcare reform means to them.
This confusion will likely continue as lawmakers, regulators and the health insurance industry work to understand and adapt to its many provisions.
GuideStone has been providing health plans for Southern Baptist churches and ministries for more than a half century. During that time, we have seen many changes in how healthcare plans are designed and how they are administered. While we anticipate that the nature and scope of this new legislation will be a key area of focus for years to come, we want you to know that GuideStone’s purpose remains unchanged – to provide benefits and services to meet your needs.
In cooperation with other denominations, we are monitoring legislative issues to determine the impact the legislation has on church plans. We are working diligently to make known to Congress the unique nature and needs of church health plans and the past provisions that have enabled church plans to serve their participants. We pledge to remain informed as events unfold and to keep our participants abreast of issues as we continue to be an advocate for you and your ministry.
The Patient Protection and Affordable Care Act will have significant short-term and long-term impacts on GuideStone health plans. Making eligibility or benefit changes to health plans – even if the changes are required by law – involves adjusting plan design and pricing. Any change to plan eligibility or benefits creates potential cost implications.
For example, due to the nature of our Southern Baptist Convention polity, GuideStone cannot mandate that all Southern Baptist churches insure their ministers and employees in GuideStone’s health plans. Because of this polity and in order to maintain a viable health plan for its participants, GuideStone uses underwriting to determine eligibility. One provision of the new law – that does not begin until 2014 – prohibits health plans from denying coverage on the basis of pre-existing conditions.
GuideStone has already begun making some positive changes that comply with healthcare reform laws sooner than the required deadlines. For example, since 2005, GuideStone health plans have provided unlimited annual and lifetime benefits. GuideStone health plans already have a provision that we will not cancel a participant’s coverage for excessive medical claims. The new law requires that later this year health plans must cover eligible dependents up to age 26. We have already added this provision to our health plans.
GuideStone, like all private insurers, will be studying the future impacts of such provisions on our plans. We are proceeding carefully within the requirements of the law to ensure that these changes are made in ways that don’t undermine the stability of the health plan.
Please bear with us over the coming months as we analyze and address the provisions of the new law. The creators of this law included the gradual phasing in of changes — especially the significant ones — to give all of us time to learn, understand and plan before taking action. We will be sure to communicate with you actions we take in response to the new health care law. Please visit our healthcare reform web page; we’ll update it as new information comes to light.