August 14, 2000
Annuity Board approves rate increase
___SAN DIEGO, Calif.--Some participants in Annuity Board insurance programs will experience double-digit increases in premiums, trustees of the Dallas-based agency were told during a July 31-Aug. 1 meeting in San Diego.
___Also during the meeting, President O.S. Hawkins expressed gratitude that the Southern Baptist Convention has approved the Annuity Board's request to begin offering additional financial services for individuals and Baptist institutions.
___Trustees approved a rate increase for participants in the board's Personal Security Program and Employer Security Program medical plans including Medicare primary plans. The increase will become effective Jan. 1.
___The Personal Security Program and smaller groups in the Employer Security Program will experience a 12-month rate increase of 22 percent. Larger groups in the Employer Security Program also will experience increases for 2001, but notification of the specific increases will be sent to employers by the middle of September.
___"A double-digit rate increase is significant for our participants, but it is needed to maintain the integrity of our medical products," said Doug Day, managing director for insurance services. "This increase was necessary because of the rising costs of health care and prescription drugs, the high utilization of medical services by our participants and our claim expenses continuing to outpace our annual premiums.
___"We hope the recent changes in the prescription drug program and the introduction of two Medicare supplement plans in 2001 will help stabilize our medical plans and reduce future rate increases," Day added.
___Day also announced the introduction of several new insurance products in the coming months.
___This fall, the Annuity Board will add a long-term care product through General Electric Capital Assurance Co., the long-term care division of GE Financial Assurance. And beginning Jan. 1, the board will offer several dental plan choices to participants in the Personal Security Program.
___Hawkins expressed enthusiasm for several other new investment products the Annuity Board will introduce now that approval has been granted by the SBC.
___Additions include personal investing in accounts unrelated to retirement, institutional investment services and offering Individual Retirement Accounts.
___"We plan to offer traditional, Roth and educational IRAs sometime in 2001," said Jim Morrison, managing director for retirement services. "In a recent survey, 25 percent of Annuity Board respondents indicated they would be very likely to invest in an IRA offered by the board. These products will be another way our participants can plan to put money aside for the future."
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