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"These plans are costing NJ employers a fortune," says Scott Rappoport, CLU, ChFC, RHU, CEBS, President of Benefit Sources & Solutions in Bound Brook, NJ, "but employers must include healthcare benefits as part of their compensation package in order to compete for employee talent. As an employer, it's important to have a plan that meets your employees' needs, your operating budget and your long-range business goals and objectives." As health care costs continue to rise, more employers are looking to Consumer Driven Health Plans and employee wellness programs to help keep costs under control, according to the nation's largest and most comprehensive benchmark survey of employer-sponsored plan design and plan costs, the 2008 UBA Health Plan Survey. Consumer Driven Health Plans, or CDHPs, are designed to have lower premiums, but typically have higher deductibles and out-of-pocket costs for common procedures. Employers offset these higher out-of-pocket costs by offering employees a health reimbursement account (HRA) or a health savings account (HSA) and contributing funds. Nationally, CDHPs increased by 43 percent from last year, and now comprise nearly 13 percent of all plans offered by employers. The percentage of employees nationwide enrolled in these plans nearly doubled, from six percent in 2007 to 11.2 percent this year. In New Jersey, only 3.4 percent of employees are covered by CDHPs. More than half (52.3 percent) of the state's employees are enrolled in preferred provider organizations (PPOs), while participation in health maintenance organizations (HMOs) has slipped to just 2.2 percent and fee-for-service (FFS) plans have virtually disappeared from the market. Point-of-service (POS) plans represent the second most popular plan covering New Jersey employees, with 39.5% enrollment. "Employers today are challenged by a host of issues relating to employee benefits," observes Rappoport. "The rising costs of providing employee health benefits, employees' lack of appreciation for benefits provided by the employer, the lack of knowledge about the true value of benefits, and the pressure of meeting ongoing government regulations." Benchmarking data from the annual UBA Health Plan Survey is valuable to large, mid-market and small employers in evaluating the effectiveness of their current plans and in planning future plan changes while keeping their benefits both competitive and cost effective, Rappoport noted. With responses from more than 18,000 health plans sponsored by 12,860 employers nationwide, employing over 1.9 million people and insuring 4.4 million people, the 2008 UBA Health Plan Survey provides benchmarks for a greater number of specific industries, regions, and employee size categories than is available from any other single resource. "The intent of the survey is to provide not only large employers with effective plan benchmarks, but most importantly, to provide the 96 percent of employers with less than 50 employees benchmarking data that is critical in managing their programs effectively," added Rappoport. Benefit Sources & Solutions, located in Bound Brook, NJ, provides a personalized and multi-faceted approach to managing employee benefit programs to business leaders and human resources professionals at companies ranging from 20 to 3,000 employees. From medical insurance to 401(k) plans, the benefit professionals at Benefit Sources & Solutions can identify how a client's benefit program compares to other employers in their region and industry and size, determine appropriate benefit levels and develop the most cost-effective plan to suit the client's needs. Value-added services include complete administration and compliance support, communicating all aspects of the benefits program to the workforce, and a host of technology-based systems designed to keep companies competitive in the marketplace, maintain the best possible rates and enhance employee appreciation and morale. For more information about Benefit Sources & Solutions, visit www.benefitsource.com. United Benefit Advisors (UBA), (www.benefits.com) is one of the nation's largest employee benefits advisory organizations with over 1,900 experienced benefits professionals located in more than 165 offices across North America. As an alliance of the nation's premier independent benefit advisory firms, UBA members (such as Benefit Sources & Solutions) are better positioned to help employers and employees respond more efficiently and effectively to the challenges of an ever-changing employee benefits marketplace. © Copyright 2008 by ItsaSurvey.com Top of Page |
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