PARSIPPANY, N.J., Jan. 31 /PRNewswire/ — Business owners and human
resource executives grappling with ways to keep their employee health benefits
both competitive and cost effective found out how their plans compare to
others today at a breakfast seminar at Embassy Suites Parsippany. Scott
Rappoport, a 25-year veteran of the employee benefits industry and President
of Benefit Sources & Solutions in Bound Brook, presented the results of the
2007 United Benefit Advisors (UBA)/Benefit Sources & Solutions Health Plan
Benchmarking Survey, the nation’s largest and most comprehensive survey of
plan design and plan costs.
Mr. Rappoport told participants that the average annual health plan cost
per employee is $6,881 (medical only coverage), with an average employee cost
of $3,110 and an average employer cost of $3,771 per employee, according to
the survey, which evaluated responses from 16,485 health plans sponsored by
11,723 employers nationwide who employ nearly 1.9 million people
(approximately 4.5 million total lives).
The survey also confirms that higher premiums (nearly 14% higher) for
family health plans in the Northeast (particularly New Jersey) are largely
attributed to those plans having richer benefits than any other region of the
country. Specifically, 71.0% of plans in the Northeast have no single
deductible, and 82.1% have no in-network coinsurance, versus roughly 30% for
plans in other regions.
“Attracting and retaining quality employees are among the top human
capital challenges* facing organizations today,” observes Rappoport.
“Employers know that the benefits they provide must protect their most
valuable asset — their employees. Yet, they are challenged by a host of
issues relating to employee benefits: rising costs, employees’ lack of
appreciation for the benefits provided, and employees’ lack of knowledge about
the true value of the benefits. Add to that the pressure of meeting ongoing
government mandates and regulatory oversight and you’ve got some seriously
frustrated business owners and human resource managers.”
While the majority (54%) of employers offers one type of health benefit
plan, a growing number (34%) offer two types of plans — the most popular
being a Point of Service (POS) Plan. Health Reimbursement Accounts (HRAs) and
Health Savings Accounts (HSAs) (1.4%) are not widely utilized, according to
Rappoport.
What can companies do to control the rising costs of employee health
benefit plans?
“There is a major effort to keep employee health benefit costs under
control through wellness programs,” comments Rappoport. “Considering that 43%
of all health care claims result from chronic diseases, it makes sense to
start at the root of the problem and encourage healthy behaviors among
employees. More and more plans are offering employees health risk assessments
and incentives and rewards for meeting certain guidelines.”
“Today,” he quipped, “‘working’ includes ‘working out’.”
Benefit Sources & Solutions provides mid-market employer groups with a
personalized and multi-faceted approach to managing their employee benefit
programs. From medical insurance to 401K planning, account managers at Benefit
Sources & Solutions can identify how a client’s benefit program compares to
other employers in their region and industry, 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 and the 2007 United Benefit Advisors (UBA)/Benefit Sources &
Solutions Health Plan Benchmarking Survey, visit www.benefitsource.com.
SOURCE Benefit Sources & Solutions