Adventist Risk Management, Inc., the risk management and insurance organization of the Seventh-day Adventist Church in North America, announced last week it will outsource major functions of its health care operations and customer care services. Health care claims processing and customer calls currently handled by ARM will be transferred to two health care contractors over the next year.

Increasing health care costs and benefits in recent years has made it impractical for ARM to manage all aspects of claims coverage, said Paula Webber, ARM director of corporate communication. ARM executives finalized the outsourcing deal—which they anticipate will save $2 million—in recent meetings with leaders from the Adventist Church in North America.

“As we see the industry changing, it is becoming harder and harder for us to ... benefit those we serve—our clients,” said Robert Sweezey, ARM president, in an October 4 press release. He added that contracting out some ARM services would enable the company to maintain its positive bottom line and save clients money.

With the savings, however, come “significant” staff reductions. While noting that the decision to outsource was “difficult,” Sweezey said ARM’s primary focus is how best to serve its clients. “Without the [Adventist] Church, there would be no Adventist Risk Management. So, it is our obligation to provide the best solutions for our clients,” he said in the release.

The number of staff positions to be cut has not yet been determined, Webber said.

Clients won’t find any services compromised, Webber said. But, she added, there will be someone else on the other line to field questions when clients call about claims.

ARM has worked with the church in North America since the mid-1970s, when it developed a self-insured program for employee health care coverage. The program grew during the 1980s when ARM expanded to offer claims administrative services to denominational entities. Saving the Adventist Church money has long been the company’s top priority, ARM officials said.

ARM will still process member eligibility, handle client billing, health care reinsurance, statistical reporting and claims appeals, said Byron Scheuneman, ARM vice president.

ARM serves clients in North America, including the Adventist Development and Relief Agency, Griggs University, the church’s North American administration and employees at the world church’s headquarters in Silver Spring, Maryland.