Healthcare affordability is more than a benefits issue. It can affect congregational budgets, staffing decisions, ability to call or retain clergy, financial wellbeing of church workers, retirement readiness, and overall sustainability of ministry. The Pension Boards views health affordability as part of a broader commitment to supporting ministry and lifelong wellbeing that will strengthen your foundation in service to others.
Q: Why are healthcare costs increasing?
A: Healthcare costs are rising across the U.S. due to a variety of factors affecting hospital, providers, prescription drugs, chronic disease management, and medical services. These cost pressures affect employers and health plans of all sizes, including church benefit organizations. This is not unique to our denomination—it is a challenge facing organizations across the country.
Q: What’s driving costs?
A: According to The Segal Group1, a benefits and human resource consulting firm headquartered in New York City, projected PPO plan trends are approaching 15-year highs. Hospital trend continues to be driven by price inflation (labor, supply and consolidation pressures), and hospital and physician costs are also driven by growing use of AI for coding.
Prescription drugs trends are projected to rise in 2027, driven by specialty therapies, expansion of glucagon-like peptide-1 (GLP 1) products, and a continued shift toward a high-cost drug mix specialty therapies.
Other factors driving health care costs according to Segal, include:
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Medical inflation, impacting the cost of care delivery
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New treatments, therapies and technology
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Increased treatment burden due to the aging population and rise in obesity
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Expanded disease indications for existing therapies
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Fee for Service Payment System
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Greater emphasis on detection and diagnostics
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Health Provider consolidation
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AI-driven billing practices allowing more precise coding
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Provider cost shifting
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Social and Regulatory changes (e.g., unintended consequences of NDA/IDR)
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Social and economic factors, which can influence utilization or care decisions
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Erosion effect of fixed deductibles and copayments
1The Segal Group works with the Pension Boards to provide insights for health benefit planning.
Q: What are we doing about it?
A: The Pension Boards along with its Church Benefit Association peers are working together to:
- Advocate for faith-based communities
- Monitor health care trends and cost drivers
- Explore innovative approaches to healthcare coverage
- Educate employers and participants
- Seek ways to preserve access to quality care while managing costs
Q: What is the Church Benefits Association?
A: The Church Benefits Association (CBA) is a trusted network of faith-based benefits professionals providing member-supported benefits that promote the well-being of clergy and their families.
CBA serves over one million clergy, lay workers, and their families, who in turn support 30 million denomination members. This collective strength makes CBA a leading voice for U.S. denominational benefit programs and a global advocate for faith-based benefits.
The Pension Boards participates in coalitions sponsored by the Church Benefits Association to help the UCC Health Plan realize savings through collective purchasing power achieved in partnering with health benefits plans of other denominations. Through purchasing coalitions there is access to better pricing, broader options, and negotiating power.
Q: What is the Church Alliance?
A: The Church Alliance champions public policy initiatives on behalf of denominational benefits organizations, which provide retirement and/or healthcare benefits to clergy and lay workers. The Church Alliance also provides technical feedback to federal agencies on proposed regulations that may affect the operations of denominational benefits organizations.
Q: Why are churches and ministries feeling this impact so strongly?
A: Churches and ministries often operate with limited resources and must balance many important priorities, including ministry programs, staffing, facilities, outreach, retirement benefits, and healthcare coverage. As healthcare expenses increase, congregations face difficult decisions about how to sustain quality benefits while continuing to support the mission and ministry of the church.
Q: Are our benefit organizations raising costs unnecessarily?
A: No. The Pension Boards as a benefits provider and ministry of the UCC works year-round to manage healthcare expenses, negotiate with vendors, evaluate plan designs, and explore ways to maintain affordable and competitive coverage.
Q: Why can’t the church just offer cheaper benefits?
A: Health costs are largely driven by the broader healthcare system. While benefit organizations like ours continually evaluate ways to manage costs, reducing premiums significantly often requires tradeoffs that could affect coverage, access, or financial sustainability. Our responsibility is to balance affordability protection for plan participants.
Q: How does the Pension Boards help with UCC Health Plan costs year-to-year?
A: In the spirit of PBUCC’s approach to balancing faith and finance, we focus on three things:
- Financial stewardship: We use the strength of broader available financial resources to help offset pressures where possible.
- Expert guidance: We partner with leading benefits consultants, like The Segal Group, to ensure decisions are grounded in national employer coverage data and long-term sustainability.
- Community strength: Through our relationship with peer organizations through the Church Benefits Association, we work toward more stable and accessible coverage over time.
Q: What resources do the Pension Boards offer to help offset healthcare expenses?
A: The United Church Board for Ministerial Assistance (UCBMA), the philanthropic arm of the Pension Boards, seeks to relieve worries and financial demands so that greater wellbeing and wholeness in life and ministry is experienced. The source of these gifts is Our Church’s Wider Mission (OCWM), and The Christmas Fund Offering.
- Emergency Grants are available to offset any unforeseen events that bring financial hardship such as paying unexpected medical bills following a surgery, funeral expenses for a minister or lay worker, or covering repair costs following a natural disaster or other crisis. The grants are available to UCC authorized ministers in good standing, lay employees of a UCC congregation, Association, Conference, or National Setting, with a minimum of 2 years’ service; their surviving spouses/partners; and Members in Discernment. To learn more about financial support for:
- Active ministers, click here
- Retired servants, click here
- Health Supplementation Grants aid retirees in paying their health premiums for the UCC Medicare Advantage Plan with Rx. Eligible persons are at least 65 years of age and one of the following: authorized ministers with current UCC standing; lay employees of a UCC congregation, Association, Conference, or National Setting (with a minimum of 10 years of service; and their surviving spouses/partners. To learn more about financial support for:
- Active ministers, click here
- Retired servants, click here
Q: What is anticipated for 2027 UCC Health Plan Rates?
A: Pension Boards continues to adopt various strategies to manage these costs by providing quality healthcare coverage, wellness programs and coaching, and virtual health services, which focus on preventative care to keep you healthy.
UCC Health Plan rates effective January 1, 2027, will be announced as we approach the fall enrollment season. It’s important to note that our UCC Health Plan updates remain competitive with comparable marketplace plans, and other denominational benefit plans.
Q: Is there hope that healthcare costs will improve in the future?
A: While no single organization can solve the broader healthcare affordability challenge alone, we believe that continued collaboration, education, advocacy, responsible plan management and innovation can help create a more sustainable future. The more people who participate in our plans, and the more broadly risk is shared across the community, the more we can support long-term stability and affordability. Our commitment is to remain actively engaged in this work on behalf of those who faithfully serve our church.
Read “Shared Commitment to Sustainable Church Health Benefits,” the Church Benefits Association Shared CEO Statement.