Insights from NJBIA 2014 Health Benefits Survey
The NJBIA 2014 Health Benefits Survey, presented by Christine Stearns, Vice President of Health and Legal Affairs for the New Jersey Business & Industry Association, revealed that despite cost challenges, a large majority of businesses in North and Central Jersey provide health benefits. Small businesses experienced the largest cost increase at 24%. Escalating health benefit costs are seen as the biggest threat to continued coverage. The survey also provided information on average costs of health coverage, likelihood to discontinue coverage, reasons for discontinuing coverage, and employer contributions.
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NJBIA 2014 HEALTH BENEFITS SURVEY Presented by Christine Stearns Vice President of Health and Legal Affairs for the New Jersey Business & Industry Association October 30, 2014
About the survey Conducted in July and August 2014 583 respondents 80 percent of respondents from North and Central Jersey 84 percent had only one business location
Overview Overwhelming majority of businesses provide health benefits Small businesses faced the largest cost increase: 24 percent over last year Despite challenges, large majority expect to continue benefits next year Escalating health benefit costs are the biggest threat to providing coverage in the future
Cost increases by employer size 30% 24% 25% # of employees 20% 1-24 25-49 50-99 100-249 250+ 16% 15% 13% 10% 8% 7% 5% 0%
Average Cost of Health Coverage Company Size Employee Only Parent/ Child Husband/ Wife Family Employee Only $7,416 1-24 $7,560 $10,800 $16,008 $19,272 25-49 $5,892 $9,960 $12,456 $17,244 Parent/Child $11,352 50-99 $6,708 $11,556 $13,812 $18,876 100-249 $8,136 $15,702 $18,660 $25,416 Husband/Wife $15,660 250+ $9,960 $16,008 $20,340 $13,440 Family Plan $19,116
Likelihood to discontinue coverage 1-24 250+ Employees Employees 3% 9% 8% Very Not sure Somewhat Not very Not at all Very Not sure Somewhat Not very Not at all 9% 44% 17% 88% 22%
Reasons for discontinuing coverage Cost 90% ACA penalty costs less 15% Not enough employees 14% Complexity 14% Mandate does not apply 12% 0% 20% 40% 60% 80% 100%
Employer contribution 90% 82% 81% 80% 73% 72% 69% 70% 64% 61% 60% 52% 50% 48% 50% Dependent coverage Employee coverage 40% 30% 20% 10% 0% 1-24 25-49 50-99 100-249 250+
Initial cost increases in 2014 35% 32% 30% 25% 24% 25% 23% 20% 17% 16% 15% 15% 13% 10% 8% 7% 5% 0% 1-24 25-49 50-99 100-249 250+ Initial cost increase Final cost increase
How employers contained costs Reduced benefits 19% High-deductible plan 25% Changed carriers 26% Increased employee share 29% Increased cost sharing 53% 0% 10% 20% 30% 40% 50% 60%
How employers paid for cost increase Lowered profits 45% Limited wage increases 35% Delayed business investment 22% Increased productivity 13% Cut employees 12% 0% 10% 20% 30% 40% 50%
Conclusions Employment market drives access Employers see providing health benefits is seen a good business decision. Commitment to providing benefits is strong Employers plan to continue to offer healthcare coverage despite cost increases. Cost is the biggest threat to private-sector coverage For those employers that are considering discontinuing coverage, excessive cost increases are the reason. Value is key to containing costs Getting good results for the costs of providing healthcare coverage.
NJBIA 2014 HEALTH BENEFITS SURVEY Presented by Christine Stearns Vice President of Health and Legal Affairs for the New Jersey Business & Industry Association October 30, 2014
