Church health insurance can be a complex component to many ministries, so we teamed up with our friends at Stewarded to help clarify some things.
The new “One Big Beautiful Bill” (OBBB) is changing the way churches and nonprofits can care for their teams. While rising costs are a reality, this bill also opens the door to new, smarter ways to provide coverage that fits your budget and your mission.
We sat down with Gabe Pelphrey, Principal at Stewarded, to unpack what these changes mean for pastors and church leaders.
Rising Costs, New Opportunities
Many churches and nonprofits are bracing for steep health insurance renewal increases in 2026. On top of that, the extra government subsidies that made Marketplace coverage more affordable for individuals during COVID are going away.
But there’s good news: OBBB introduced new strategies that could help ministries save money and offer more personalized benefits.
- Support for Individual Plans: Instead of only offering a group plan, churches can now help employees pay for their own Marketplace coverage.
- Tax-Free Premiums: Staff members can use pre-tax dollars for their share of premiums, stretching every paycheck further.
Expanded HSA Options: Marketplace plans can now be paired with Health Savings Accounts (HSAs), helping staff save for future medical expenses tax-free.
“Group insurance isn’t the only option anymore,” said Gabe. “There are creative, affordable ways to provide benefits—especially for churches and nonprofits with 50 or fewer employees.”
Breaking Free from “All or Nothing” Coverage
For years, many churches felt they had two choices: stretch their budget to cover a costly group plan or offer no coverage at all. OBBB changes that equation.
With tools like ICHRAs (Individual Coverage Health Reimbursement Arrangements) and QSEHRAs (Qualified Small Employer Health Reimbursement Arrangements), organizations can give employees a monthly allowance to purchase their own plans—while still enjoying many of the same tax benefits as traditional group coverage.
What Church Leaders Should Do Next
If you’re feeling the pressure of rising costs or struggling to understand your options, Gabe’s advice is simple:
“Take time to explore what’s available. There are strategies out there that can help you steward resources wisely and take good care of your people.”
Here are three practical steps for church and nonprofit leaders:
- Audit your current plan: Know what you’re paying for and how your staff is using it.
- Compare your options: Look at individual coverage with employer support alongside group plans.
- Plan for the future: Use tools like HSAs to create long-term value for your team.
A Better Way to Steward Health Benefits
Church health insurance doesn’t have to feel intimidating. With the right guidance, these changes can create opportunities to save money, improve benefits, and keep your mission front and center.
Stewarded specializes in helping churches and nonprofits navigate these decisions with clarity. Gabe said it best, “We walk leaders through their choices and help them find what truly fits their team and budget.”
Visit stewarded.io to explore these new strategies and get the help you need to care for your staff well.