PPI Benefit Solutions says its fourth annual Nonprofit Employee Benefits Study reveals that despite challenges, private nonprofit employers remain committed to delivering health and welfare benefits to their employees but are seeking solutions to help manage costs and improve employee engagement. PPI Benefit Solutions (PPI), a provider of benefits-administration technology and services with more than […]
PPI Benefit Solutions says its fourth annual Nonprofit Employee Benefits Study reveals that despite challenges, private nonprofit employers remain committed to delivering health and welfare benefits to their employees but are seeking solutions to help manage costs and improve employee engagement.
PPI Benefit Solutions (PPI), a provider of benefits-administration technology and services with more than 40 years experience working with nonprofit organizations, recently released the results of fourth edition of the Nonprofit Employee Benefits Study, which measures and tracks benchmarks of private, nonprofit employee-benefit plans.
The study results indicate a growing trend toward consumer-driven options (such as high-deductible health plans) and online employee self-service tools as employers try to curb rising premiums and cut administration costs while continuing to offer competitive benefit programs, according to a news release.
The nationwide survey, completed by more than 250 small- to mid-sized nonprofit organizations last November, found that the use of traditional “medical” plans has declined from 96 percent in 2009 to nearly 84 percent in 2013. Meanwhile, the use of high-deductible health plans (HDHPs) has nearly doubled, rising from 22 percent in 2009 to 43.5 percent in 2013, according to PPI. At the same time, employers are offering more voluntary benefits to help subsidize the higher deductibles and offer employees more choice.
“Nonprofits are really struggling to maintain a comprehensive benefits package, and consumer-driven plans like HDHPs, health savings accounts, and flexible spending accounts can be great, lower-cost options,” Karen Greco, director of marketing for PPI Benefit Solutions, said in the news release. “The growth in these plan types, combined with the appeal of a predictable benefits budget, is also driving a lot of interest in alternative funding and enrollment solutions like defined contribution with an online marketplace that offers a wide array of product options.”
To address issues of efficiency, more nonprofit employers are recognizing the value of automated benefits administration and enrollment, as indicated by the 77 percent of employers (up from 28 percent in 2012) who consider benefits-administration platforms to be very important and the 44 percent of employers (up from 10 percent in 2012) who believe employee self-service portals to be very important, PPI said.
“Although the nonprofit sector has been somewhat slow in adopting employee self-service enrollment, the number is steadily growing,” Greco said. “We see it in our own business, as year after year more nonprofit employers recognize how online, employee-directed enrollment improves accuracy, transparency, and engagement and provides employees with a greater understanding of their benefit options.”
As the health-care marketplace continues to evolve, nearly 85 percent of nonprofit employers remain committed to delivering health and welfare benefits to employees in order to improve satisfaction and maintain a competitive advantage for talent, PPI contends.
The key findings of the Nonprofit Employee Benefits Study include the following.
- Prevalence of benefits (percentage of nonprofit employers who offer):
83.6 percent offer traditional medical plans (down from 87 percent in 2012)
43.5 percent offer HDHPs (up from 39 percent in 2012)
88.7 percent offer group dental (down from 90 percent in 2012)
59.1 percent offer ancillary coverage (up from 46.5 percent in 2012) - Voluntary benefits (percentage of nonprofit employers who offer):
20.3 percent offer voluntary dental (up from 17 percent in 2012)
49.7 percent offer voluntary life (up from 43 percent in 2012)
9.6 percent offer critical illness insurance (up from 6 percent)
34.5 percent offer accident insurance (up from 34 percent in 2012)
24.3 percent offer transit reimbursement (up from 17 percent in 2012) - Contribution strategies:
16.1 percent of nonprofit employers pay the full cost of health insurance
74.8 percent share the cost of health insurance between employer and employee
21.9 percent already use or are likely to use a defined contribution funding approach - Benefits administration:
77.2 percent of nonprofit employers view benefits-administration platforms as very important
44.3 percent believe employee self-service portals are very important (up from 9.6 percent in 2012)
14.5 percent of nonprofit employees utilize employee self-service (up from 8.8 percent in 2012) - Health-care reform:
16.2 percent of nonprofit employers are moderately to very likely to discontinue health-care coverage and send employees to a public, state, or federal exchange
60.5 percent of nonprofits have not calculated the cost of compliance with Affordable Care Act regulations - Private-exchange marketplace:
15.8 percent of nonprofit employers are somewhat to very likely to begin offering benefits through a private exchange
47.6 percent would consider using a private exchange if they had more information
PPI Benefit Solutions says the full report is available at www.ppibenefits.com/public/resources/research.aspx.