BY JONATHAN GALLAGHER

dventist leaders across North America face spiraling healthcare costs that are challenging budgets and causing much concern, according to church officials speaking at the North American Division Year-end meeting.

Don Platt (pictured below), a vice president of Adventist Risk Management, reported that the cost to the church's health-care plan last year was $72 million, or $530 per worker. In light of this fact the committee voted several reductions in employee benefits under the church's plan. The changes included increases in copay for prescription drugs and visits to doctor's offices, an increase in the maximum out-of-pocket costs employees must bear in medical claims, and higher deductibles on selected coverages.

NAD treasurer Juan Prestol said there was "a great desire by local conferences to curb medical expenses," adding that "these new limits are not going to make our workers poor, but will make our people think and rationalize the use of health services." The budget for healthcare benefits in some local conferences has exceeded $1 million.

South Central Conference president Joseph McCoy asked whether "these increased charges are going to wash out the increases" in remuneration voted the previous day. In response Prestol agreed that the proposed increases "will be an extra burden to our employees, but should not wipe out the remuneration increase."

Other NAD committee members voiced the opinion that it might appear to workers that the salary increase was being offset by extra expenses. Duane Rollins of Illinois asked how much the changes to the benefit schedule would reduce the overall cost to the plan. Responding, Don Platt said the cuts to benefits would reduce the plan cost by around 20 percent; however, since the national rise in healthcare costs is running at approximately 20 percent, the changes should "just hold us even."

Michigan Conference president Jay Gallimore expressed the concern that the changes were "pretty radical," and would negatively impact employees. Identifying the changes as "a hefty increase," he called for a rethinking particularly of the raise in the out-of-pocket expenses ceiling, reminding committee members that "insurance should be there when people really need it."

In response it was pointed out that the ceiling had been greatly reduced in recent years, and even 18 years ago was similar to the current level, suggesting that there was a need to increase the amount.

The voted changes become effective July 1, 2003.

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By Jonathan Gallagher, United Nations liaison director for the General Conference.