NJBIA 2014 HEALTH BENEFITS SURVEYPresented 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

Series10%

5%

10%

15%

20%

25%

30%

24%

16%

13%

8%7%

1-2425-4950-99100-249250+

# of em-ployees

Average Cost of Health CoverageEmployee Only

$7,416

Parent/Child

$11,352

Husband/Wife

$15,660

Family Plan

$19,116

Company Size

Employee Only

Parent/Child

Husband/Wife

Family

1-24 $7,560 $10,800 $16,008 $19,272

25-49 $5,892 $9,960 $12,456 $17,244

50-99 $6,708 $11,556 $13,812 $18,876

100-249 $8,136 $15,702 $18,660 $25,416

250+ $9,960 $16,008 $20,340 $13,440

Likelihood to discontinue coverage

8%9%

17%

22%

44%

1-24Employees

Very Not sureSomewhat Not veryNot at all

0.09

0.88

250+ Employees

VeryNot sureSomewhatNot veryNot at all

Reasons for discontinuing coverage

Mandate does not apply

Complexity

Not enough employees

ACA penalty costs less

Cost

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

12%

14%

14%

15%

90%

Employer contribution

1-24 25-49 50-99 100-249 250+0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

48%52% 50%

64%61%

81%

73% 72%

82%

69%

Dependent coverageEmployee coverage

Initial cost increases in 2014

1-24 25-49 50-99 100-249 250+0%

5%

10%

15%

20%

25%

30%

35%32%

25%23%

17%15%

24%

16%

13%

8% 7%

Initial cost increase Final cost increase

How employers contained costs

Increased cost sharing

Increased employee share

Changed carriers

High-deductible plan

Reduced benefits

0% 10% 20% 30% 40% 50% 60%

53%

29%

26%

25%

19%

How employers paid for cost increase

Cut employees

Increased productivity

Delayed business investment

Limited wage increases

Lowered profits

0% 5% 10%15%20%25%30%35%40%45%50%

12%

13%

22%

35%

45%

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 SURVEYPresented by Christine Stearns

Vice President of Health and Legal Affairs for the New Jersey Business & Industry Association

October 30, 2014