Rising Healthcare Costs and How Churches Can Support Pastors

Rainer on Leadership

The annual cost of family health insurance coverage at work is now around $24,000, up about 7% this year. While there are some ways to mitigate these expenses, healthcare costs are up much relative to other goods and services. Since 2000, the cost of medical care has surged by 119%. In comparison, the prices for all consumer goods and services have increased by 85% over the same timeframe. How should churches support pastors with healthcare costs?

• • The health of the pastor has a direct impact on the health of the church.
  • The problem is not unique to pastors. They are in the same situation as many other workers, especially those who are self-employed.
  • Healthcare is one of the more important benefits churches can provide.
  • Should churches pay healthcare for the employee or the family? It depends.
  • There are ways to reimburse church staff for healthcare costs through Health Reimbursement Arrangements (HRAs), but make sure you know the tax guidelines. Each full-time staff person must be offered the same amount.
  • Make sure your employee handbook is up to date and you have sought advice from a professional.

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