What is HMO? HMO stands for Health Maintenance Organization. This form of health insurance combines a range of coverages in a group basis. Doctors and other professionals are paid a flat monthly fee whether you see them or not. You pay the same amount every month, as long as you see doctors within the approved network. If you need to see a professional outside the network, you will first need a referral from a primary physician within the HMO, and then there may be additional fees to see a doctor outside of the network. Any visit, prescription, or additional care must be approved by the HMO in order to be covered. Kaiser Permanente is an example of an HMO.
When a church is getting started, there are a lot of expenses and very little, if any, income, creating a massive gap between income and expenses.
As the church gets established, expenses come down (there’s not as much capital being purchased), and people start attending and giving, so income increases. The gap comes closer together.
In recording tithes and offerings for churches (I’m a bookkeeper), I’ve started to ponder the whole giving electronically thing (or e-tithing). I thought I’d bring the discussion to the Ps20 world in hopes that some pastor or wise lay man or woman could settle the issue and I can go on my merry way.
Any ordained minister (as defined by their denomination or elder board) is considered a “Duel Status employee”. This basically means that they are considered self-employed AND fully employed by the church. That said, an ordained minister is allowed to consider some of their income as a “housing allowance”. Historically, some churches offered a parsonage, but those are now fairly few and far between. For the purposes of this discussion, we’re going to assume that this is a standard ordained minister.
There are several “Health Care Sharing” options, but none of them provide “Credible Coverage”.
Here’s how they work:
Each person or family is required to pay a monthly fee (this is NOT a premium). This monthly fee pays the health care costs of other families in the program. When you need health care, the money comes from this fund as well. In addition to their monthly fees, members are encouraged to give further money in order to help pay for the treatments of others. This is necessary because medical costs are high and the monthly fees are low.
Every non-religious, non-profit organization must file Form 1023 with the IRS. It is the application to be a non-profit. Non-religious non-profits must also do an annual tax return, Form 990.