Diocesan insurance avoids double-digit rate increase

By KENNY KEANE, Globe staff reporter
June 5, 2003

Current trends in the medical field have led to an increase in the cost of health insurance.

According to Margaret Fuentes, director of personnel and employee benefits for the Sioux City Diocese, many health plans for businesses and schools are increasing anywhere from 25 to 70 percent.

However, she said the diocesan insurance board has passed along only an eight percent increase for the full-time employees across the diocese.

"I think that really speaks to the success of our plan and that self-insurance has been a success for us," Fuentes said. "Most plans are going to see a double-digit increase, and we may again, too. It's likely that we will based on claims.

"However, I think at this point, to have the kind of year that we've had - and we have crossed over into our reinsurance level a couple of times - that an eight percent increase is really outstanding."

One of the benefits from the diocese switching to the self-insured plan two years ago, according to Fuentes, was the ability to add to the plan the long-term disability for all full-time employees.

"Regardless of whether or not they take the health insurance, they now have coverage for long-term disability," she said. "We're all going to have bills if we can't work. Sometimes I think people get a little bit more focused on the life insurance as opposed to the disability, but when you're disabled and can't work the bills go on. So I think that's really a key feature."

Fuentes said another important aspect of the diocesan insurance is the cafeteria plan, which allows people to put money aside for medical, out-of-pocket expenses such as prescription drug co-pays, office co-pays, deductibles or any of those types of things that are not covered by insurance.

"You're going to set aside money on a pre-tax basis out of your check to cover those expenses as they come through," she said. "The savings that get generated then for the employee are that you're not paying taxes on that amount of money that you've set aside, and your still paying your bills just like you always have.

"This cafeteria plan is not just open to the lay employees, but it's also open to priests. We do have priests who are participating in the plan, and I'd like to see more because I know they have out-of-pocket expenses."

Father Gary Snyder, pastor of St. Joseph Church in Sioux City and a member of the diocesan insurance board, said he believes the diocese does offer a good insurance plan.

"What we have tried to do as a committee - not only this year but over the years - was to try to come up with a program that does provide good medical coverage for our employees and for their dependents who they choose to enter into the program," he said. "We've also tried to keep our costs as such that our churches and schools can afford to pay for the costs. I think our bottom line is that we can provide a good, solid benefit for our employees as a way of showing our appreciation for all that they do for us."

For any questions about the diocesan plan, Fuentes can be reached by phone at (712) 233-7510 or by e-mail at margaretf@scdiocese.org.