If you have ever been around a busy church office in Fort Worth, you know the sound of the phones ringing, the smell of coffee brewing, and the steady hum of people working to keep the ministries moving.
Felicia is the head of the church’s finance committee. Every year, she helps review budgets, vendor contracts, and staff benefits. She takes her role seriously because every dollar matters.
The annual renewal notice for their group health benefit plan came in, and the numbers were hard to believe. The premiums were higher than ever, and the explanation was the same as always. Premium rates are up “across the market.” There was no real reason given, and no real options offered except to pay more or cut benefits.
Felicia’s heart sank. The church has a pastor and several staff who rely on that coverage. She didn’t want to strip it away or tell them to go find their own plans using ICHRA dollars on the inferior marketplace plans. She wanted a better way to care for the people who serve every day.
That’s when we introduced her to a self-funded health plan. She decided to dig in on the details.
The Problem: Understanding What’s Driving the Cost
Felicia learned that the church’s old plan was what’s known as a fully insured health plan through a giant brokerage. Every month, they pay a fixed health insurance premium to the insurance company, and the insurance company takes on all the risk. That sounds safe, and it is. But here’s the catch that most Texas churches don't understand. The church pays that same amount whether anyone in the medical network goes to the doctor or not.
When these healthcare claims rise for the insurance company across all their groups, they raise everyone’s rates. That’s why churches and small businesses keep seeing increases year after year.
A level-funded plan works differently. The church still makes a predictable monthly payment, but that payment is divided into three parts: administrative fees to the third-party administrator, stop-loss insurance to protect against big claim costs, and a pool of money to pay regular medical claim expenses.
If staff stay healthy and the employee claim fund is not fully used, part of that unused money can come back to the church at the end of the year in the form of a premium refund.
Felicia liked the sound of that. For the first time, it felt like the church could actually benefit from being good stewards of their healthcare spending instead of feeling punished by it.
Managing Risk and Stability
Felicia’s first question was about risk. She wanted to know what would happen if one of the staff members got really sick. Would the church be stuck with a huge bill?
That’s where the stop-loss protection comes in. A level-funded plan has a safety net that caps how much of the medical expenses the church is responsible for. One major claim won’t wreck the budget of the church health plan.
Fully insured plans are all-or-nothing. You pay the premium and have no control. Self-funded insurance plans share a bit of the risk but reward you when claims are low. For a church with a relatively small, stable team, that tradeoff can make a lot of sense.
Transparency in Costs and Claims
One of Felicia’s frustrations with the old plan was that she could never see where the money went. The insurance company sent a renewal letter, but it never explained how much was spent on claims versus administration versus advertising.
If your church chooses level-funded health coverage, the reporting is clear. Each month, the church can see how the money is being used. That transparency means the finance committee can keep an eye on medical costs and how much utilization their staff actually has in a year.
This allows them to make informed decisions about future health plan options. For a church that takes stewardship seriously, being able to see how each dollar is used matters. It is the difference between hoping you are spending wisely and knowing that you are.
Customization and Flexibility
Felicia also discovered that level-funded plans give her church more flexibility. The old plan was a one-size-fits-all setup based around the Affordable Care Act. They had to choose from a few preset options that didn’t quite fit everyone.
With the new approach, they could build something that matched their staff’s real needs for health insurance. That meant including benefits like telehealth visits and direct primary care.
For churches with stricter thoughts on birth control or similar health benefits, it can allow for more control of the benefits package that is offered. The flexibility allowed the church to balance costs and coverage. This allows you to care for everyone on the team while maintaining truth in your principles.
Working with the Right Partner
Felicia knew she couldn’t figure all this out alone. That's why she was glad she had reached out to Insurance For Texans. We walked her through every detail during the selection process.
We explained that level-funded plans are not just for corporations. Many churches and ministries across Texas use them because they strike the right balance between stability, stewardship, and staff care. We also explained that not all companies will provide these health insurance plans to churches. It is important to work with an experienced broker who understands this.
Together, we compared their current fully insured plan to several level-funded options. We looked at the stop-loss insurance, benefits administration software, fees associated with it, and potential refunds available with low medical expenses. We made sure the plan worked for the church’s budget and gave them room to grow.
Felicia brought the information back to the finance committee. For the first time in years, they were not just reacting to a renewal. They were making a proactive choice that helped their staff and their ministry.
A Better Way for Texas Churches to Protect Their Staff
The committee voted to move forward with the level-funded group health insurance plan. Felicia could see the relief on everyone’s faces. They were not cutting benefits. They were not pushing staff onto the marketplace. They were building something smarter.
The staff felt cared for, and the church found a way to be financially responsible while still living out its values.
Felicia knows this approach will serve them well for years to come. She also knows that when you work with the right partner, health insurance does not have to feel like an impossible puzzle. It can be a tool for ministry.
Click the button below to talk with a Texas health insurance expert who understands how churches operate and can help you explore whether a level-funded plan could be right for your ministry.