NJ Employers Paying 27.5% More than National Average for Employee Health Care Plans

    Nation's Largest Benchmark Survey Cites Growth in Consumer Driven

Health Plans and Wellness Programs



    BOUND BROOK, N.J., Aug. 21 /EMWNews/ -- Health care coverage

continues to be a huge financial burden to both employers and employees,

especially in New Jersey, according to a new Health Plan Survey conducted

by United Benefit Advisors (UBA). New Jersey employers pay 27.5% more

($9,344) per employee for health care coverage than their counterparts

nationwide ($7,327). Average monthly premiums among the 352 New Jersey

plans included in the survey were $444 for single coverage and $1,110 for

family coverage.



    "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 http://www.benefitsource.com.



    United Benefit Advisors (UBA), (http://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.