PPI Benefit Solutions RESEARCH. Fourth Annual Nonprofit Employee Benefits Study Supplemental Report

Transcription

1 PPI Benefit Solutions RESEARCH Fourth Annual Nonprofit Employee Benefits Study Supplemental Report

2 ABOUT THE STUDY The PPI Benefit Solutions (PPI) Fourth Annual Nonprofit Employee Benefits Study measures and tracks benchmarks of private, nonprofit employee benefit plans. Conducted over a four week period beginning November 4 th, 2013, the results represent over 250 nonprofit employee benefit programs across the United States, and show that despite challenges, nonprofit employers remain committed to delivering health and welfare benefits to their employees but are seeking solutions to help manage costs and improve engagement. The purpose of this supplemental report is to provide an in-depth look at the results broken out by company size, allowing for comparison between the full results and organizations with less than 20 employees,,, and. For a more comprehensive analysis of the full results, go to to view or download our Fourth Annual Nonprofit Employee Benefits Study. Here you will find additional supplemental materials available, as well as a link to sign-up to participate in our next survey. Please contact research@ppibenefits.com if you have any questions. TABLE OF CONTENTS Section 1: Current Benefits. 02 Section 2: Contribution Strategies 13 Section 3: Plan Services.. 24 Section 4: Compliance and Health Care Reform Section 5: Exchange Marketplace. 36 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 1

3 SECTION 1: CURRENT BENEFITS Prevalence of Benefits Offered By Nonprofit Organizations Figure 1 Coverages offered EEs EEs EEs EEs Traditional medical (HMO/PPO/POS) High Deductible Health Plan (HDHP) Health Savings Account (HSA) Health Reimbursement Arrangement (HRA) Flexible Spending Account (FSA) Group dental Group life Long-term disability Short-term disability Long-term care Vision care Prescription carve-out Critical illness Voluntary dental Voluntary life Executive benefits Transit/Parking reimbursement Accident insurance Cancer benefit Paid time off (PTO) Tuition assistance/continuing education None Other To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 2

4 Important Objectives When Selecting Benefit Plans Figure 2 Objective Company size by EEs Extremely important Very important Moderately important Slightly important Not at all important TOTAL RESPONSES Controlling costs Attracting & retaining employees Increasing employee job satisfaction To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 3

5 Important Objectives When Selecting Benefit Plans Figure 2 (CONTINUED) Objective Company size by EEs Extremely important Very important Moderately important Slightly important Not at all important TOTAL RESPONSES Reducing benefit administration costs Providing benefit options that are easy to understand Addressing employees diverse needs To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 4

6 Important Objectives When Selecting Benefit Plans Figure 2 (CONTINUED) Objective Encouraging healthy lifestyles Company size by EEs Extremely important Very important Moderately important Slightly important Not at all important TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 5

7 Challenging Factors When Providing Employee Benefits Figure 3 Factor Company size by EEs Extremely challenging Very challenging Moderately challenging Slightly challenging Not at all challenging TOTAL RESPONSES Cost to nonprofit Cost to employees Plan design and quality of benefits To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 6

8 Challenging Factors When Providing Employee Benefits Figure 3 (CONTINUED) Factor Administrative burden Employee education and communication Competition for talent Company size by EEs Extremely challenging Very challenging Moderately challenging Slightly challenging Not at all challenging TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 7

9 Challenging Factors When Providing Employee Benefits Figure 3 (CONTINUED) Factor Compliance with state and federal regulations Employee resistance to change Health Reform Implementation Company size by EEs Extremely challenging Very challenging Moderately challenging Slightly challenging Not at all challenging TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 8

10 Challenging Factors When Providing Employee Benefits Figure 3 (CONTINUED) Factor Meeting the needs of diverse employee populations Company size by EEs Extremely challenging Very challenging Moderately challenging Slightly challenging Not at all challenging TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 9

11 Hours Per Week Required for Employees to be Eligible for Medical Benefits Figure 4 Hours per week required EEs EEs EEs EEs hours per week hours per week to 29 hours per week hours per week to 39 hours per week* hours per week* TOTAL RESPONSES *Requiring employees to work more than 30 hours per week to be eligible for medical benefits will not be compliant with PPACA beginning in 2015 for employers with 100+ employees; 2016 for employers with employees. Waiting Period Length for Medical Benefits Figure 5 Waiting period length EEs EEs EEs EEs Active upon the date of hire First of the month after the date of hire First of the month after 30 days First of the month after 60 days First of the month after 90 days (not compliant with PPACA beginning 2015) days from the date of hire days from the date of hire days from the date of hire We do not offer a medical plan Other TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 10

12 Waiting Period Length for Life Plans Figure 6 Waiting period length EEs EEs EEs EEs Active upon the date of hire First of the month after the date of hire First of the month after 30 days First of the month after 60 days First of the month after 90 days days from the date of hire days from the date of hire days from the date of hire We do not offer a life plan Other TOTAL RESPONSES Enrollment Methods Currently Used Figure 7 Enrollment method EEs EEs EEs EEs Paper enrollment Group meetings One-on-one meetings Enrollment kits Employee benefits informational website Online employee self-service for open enrollment only Online employee self-service for open enrollment/new hires/ life events Other TOTAL UNIQUE RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 11

13 Communication Methods Currently Used Figure 8 EEs EEs EEs EEs Communication method Annual communication of benefit changes Onsite enrollment meetings As-needed educational sessions Company Intranet Posters around the office Payroll stuffers Total compensation statements Employee benefits portal Benefit fairs Healthcare advocate/coach Benefits newsletter TOTAL UNIQUE RESPONSES Wellness Activities and Services Currently In Place Figure 9 Wellness activity/service EEs EEs EEs EEs Healthcare advocate/coach Onsite gym Gym membership discounts or reimbursement Third party wellness services Flu vaccinations Health/biometric screenings Health fairs Employee Assistance Programs (EAP) Health Risk Assessments with incentives Telemedicine Services TOTAL UNIQUE RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 12

14 SECTION 2: CONTRIBUTION STRATEGIES Contribution Strategies Currently In Place Figure 10 Contribution strategy EEs EEs EEs EEs Percentage of premium Equal fixed dollar amount for all benefits Equal fixed dollar amount for medical benefits ONLY Fixed dollar amount by dependent tier Not applicable Other TOTAL RESPONSES Medical Contribution Strategies Currently In Place Figure 11 Medical contribution strategy EEs EEs EEs EEs Based on years of service Based on position or salary Varies by plan type tier rate structure tier rate structure Reduced coverage for spouses Dependents must prove a lack of access Coverage for domestic partners No dependent coverage Other None of the above TOTAL UNIQUE RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 13

15 Nonprofit Funding of Employee Benefits Figure 12 Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Traditional medical (HMO/PPO/POS) High-deductible medical (deductible of $1,500 or more) Health Savings Account Less than 20 Less than 20 Less than To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 14

16 Nonprofit Funding of Employee Benefits Figure 12 (CONTINUED) Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Group Dental Life Insurance Long-term disability Less than 20 Less than 20 Less than To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 15

17 Nonprofit Funding of Employee Benefits Figure 12 (CONTINUED) Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Short-term disability Long-term care Vision care Less than 20 Less than 20 Less than To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 16

18 Nonprofit Funding of Employee Benefits Figure 12 (CONTINUED) Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Prescription carve-out Executive benefits Transit/Parking reimbursement Less than 20 Less than 20 Less than To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 17

19 Nonprofit Funding of Employee Benefits Figure 12 (CONTINUED) Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Wellness programs Accident insurance Critical illness insurance Less than 20 Less than 20 Less than To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 18

20 Nonprofit Funding of Employee Benefits Figure 12 (CONTINUED) Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Cancer benefit Less than To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 19

21 Of Those Who Offer: Percentage of Premium Contribution for EMPLOYEE-ONLY Medical Coverage Figure 13 Percentage of premium contribution EEs EEs EEs EEs Less than to to to to to I don't know TOTAL RESPONSES Of Those Who Offer: Fixed Annual Dollar Contribution for EMPLOYEE-ONLY Medical Coverage Figure 14 Fixed annual dollar contribution EEs EEs EEs EEs Less than $10, $10,000 to $12, $12,501 to $15, $15,001 to $17, $17,501 to $20, More than $20, I don't know TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 20

22 Of Those Who Offer: Fixed Annual Dollar Contribution for EMPLOYEE PLUS DEPENDENT Medical Coverage Figure 15 Fixed annual dollar contribution EEs EEs EEs EEs Less than $10, $10,000 to $12, $12,501 to $15, $15,001 to $17, $17,501 to $20, More than $20, I don't know TOTAL RESPONSES Of Those Who Offer: Fixed Annual Dollar Contribution for EMPLOYEE PLUS FAMILY Medical Coverage Figure 16 Fixed annual dollar contribution EEs EEs EEs EEs Less than $10, $10,000 to $12, $12,501 to $15, $15,001 to $17, $17,501 to $20, More than $20, I don't know TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 21

23 Of Those Who Offer: Average Monthly Payroll Deduction for EMPLOYEE-ONLY Medical Coverage Figure 17 Monthly payroll deduction EEs EEs EEs EEs Less than $ $50 to $ $101 to $ $151 to $ $201 to $ $251 to $ More than $ None I don't know TOTAL RESPONSES Of Those Who Offer: Average Monthly Payroll Deduction for EMPLOYEE PLUS SPOUSE Medical Coverage Figure 18 Monthly payroll deduction EEs EEs EEs EEs Less than $ $100 to $ $201 to $ $301 to $ $401 to $ More than $ No dependent coverage I don't know TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 22

24 Of Those Who Offer: Average Monthly Payroll Deduction for EMPLOYEE PLUS CHILDREN Medical Coverage Figure 19 Monthly payroll deduction EEs EEs EEs EEs Less than $ $101 to $ $201 to $ $301 to $ $401 to $ More than $ No dependent coverage I don't know TOTAL RESPONSES Of Those Who Offer: Average Monthly Payroll Deduction for EMPLOYEE PLUS FAMILY Medical Coverage Figure 20 Monthly payroll deduction EEs EEs EEs EEs Less than $ $100 to $ $201 to $ $301 to $ $401 to $ $501 to $ $601 to $ More than $ No dependent coverage I don't know TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 23

25 SECTION 3: PLAN SERVICES Sources of Benefits Administration Management Figure 21 Sources of benefits administration EEs EEs EEs EEs My benefits broker In-house using various carrier systems Benefits administration vendor In-house using carriers' paper forms TPA (Third Party Administrator) Other Payroll company PEO (Professional Employer Organization) In-house with purchased software Private exchange marketplace TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 24

26 The Importance of Benefits Administration Services Figure 22 Benefits administration service Company size by EEs Extremely Important Very Important Moderately Important Slightly Important Not at all Important TOTAL RESPONSES One administration platform to manage all life & health benefits Consolidated premium billing Premium reconciliation and discrepancy resolution with carriers To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 25

27 The Importance of Benefits Administration Services Figure 22 (CONTINUED) Benefits administration service Company size by EEs Extremely Important Very Important Moderately Important Slightly Important Not at all Important TOTAL RESPONSES COBRA administration Online compliance resources HSA/HRA/FSA Administration To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 26

28 The Importance of Benefits Administration Services Figure 22 (CONTINUED) Benefits administration service Company size by EEs Extremely Important Very Important Moderately Important Slightly Important Not at all Important TOTAL RESPONSES Payroll/benefits system integration Employee self-service (online enrollment) Leave/FMLA administration To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 27

29 SECTION 4: COMPLIANCE AND HEALTH CARE REFORM Sources of Information for Nonprofits Regarding Health Care Reform (ACA) Figure 23 Information source EEs EEs EEs EEs My insurance broker Government Online resources My insurance carriers Benefits administration vendor Legal counsel TPA (Third Party Administrator) In-house sources PEO (Professional Employer Organization) Business consultant TOTAL UNIQUE RESPONSES Confidence that Benefit Plans are Compliant with State and Federal Regulations Figure 24 Level of confidence EEs EEs EEs EEs Extremely confident Very confident Moderately confident Slightly confident Not at all confident TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 28

30 Confidence in Understanding of Health Care Reform (ACA) Figure 25 Level of understanding EEs EEs EEs EEs Extremely thorough Very thorough Moderately thorough Slightly thorough Not at all thorough TOTAL RESPONSES The Cost of Compliance with Health Care Reform (ACA) Figure 26 Cost of compliance EEs EEs EEs EEs It will raise our expenses less than It will raise our expenses 5 to It will raise our expenses more than It will not raise our expenses We have not calculated the cost TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 29

31 Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 Cost-saving strategy Increase employee contributions Reduce or drop certain benefits Reduce or eliminate dependent coverage Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 30

32 Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 (CONTINUED) Cost-saving strategy Offer a high-deductible health plan Scale back or eliminate salary increases Suspend bonuses Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 31

33 Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 (CONTINUED) Cost-saving strategy Raise the new hire waiting period Limit the number of employees eligible for benefits Move to a private exchange marketplace Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 32

34 Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 (CONTINUED) Cost-saving strategy Change to a defined contribution model Replace some benefits with 100 employeepaid voluntary plans Offer a "Minimum Value" plan ONLY Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 33

35 Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 (CONTINUED) Cost-saving strategy Consolidate administration Move to a PEO (Professional Employer Organization) Implement or expand a wellness program with incentives Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 34

36 Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 (CONTINUED) Cost-saving strategy Institute furloughs Employee layoffs Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 35

37 SECTION 5: EXCHANGE MARKETPLACE Likelihood to Discontinue Health Care Coverage and Send Employees to a Public, State, or Federal Exchange Figure 28 Level of likelihood EEs EEs EEs EEs Very likely Moderately likely Very unlikely TOTAL RESPONSES Likelihood to Offer Benefits through a Private Exchange Marketplace Figure 29 Level of likelihood EEs EEs EEs EEs Very likely - we would like to do so as soon as possible Very likely - we would like to do so in the next benefit cycle Very likely - we would like to do so in the next one to two years Somewhat likely - but we are not sure when I would need more information before considering it Not at all likely TOTAL RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 36

38 Likelihood to Utilize Defined Contribution Funding Figure 30 Level of likelihood EEs EEs EEs EEs We already utilize a defined contribution approach Very likely - as soon as possible Very likely - next benefit cycle Very likely - in the next one to two years Somewhat likely I would need more information Not at all likely TOTAL RESPONSES Defined Contribution Funding Structures Currently In Place Figure 31 Defined contribution funding structure EEs EEs EEs EEs Same flat amount for all employees A defined contribution for medical and/or dental with 100 employer-paid life and disability A tiered approach that gives employees with dependents a higher contribution (variable contribution) A mixed contribution with separate amounts for medical and/or dental and ancillary plans Employees who waive medical can use the entire contribution for the purchase of other benefits Employees who waive medical get a reduced contribution for the purchase of dental/ancillary plans Employees forfeit any remaining credit at the end of the election process TOTAL UNIQUE RESPONSES To view the full Fourth Annual Nonprofit Employee Benefits Study, go to Page 37

39 PPI Benefit Solutions RESEARCH About PPI PPI Benefit Solutions works exclusively through benefits brokers to help mid-sized employers relieve the day-to-day challenges of managing an employee benefits program. With over 40 years of experience working with nonprofit organizations, PPI provides a broad array of nationally recognized insurance carriers and powerful, web-based technology to offer a single solution for multiple carrier enrollments and eligibility processing (including online enrollment and employee self-service), electronic carrier interfaces and discrepancy management, true premium billing and payments, COBRA administration, and member advocacy services, all at little or no cost to the employer. (888) research@ppibenefits.com 10 Research Pkwy. Ste. 200, Wallingford, CT This material was created by PPI Benefit Solutions to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The service of an appropriate professional should be sought regarding your individual situation. PPI does not offer tax or legal advice. PPI Benefit Solutions and PPI are service marks of Professional Pensions, Inc., a subsidiary of National Financial Partners Corp.