© Copyright ClearPath Benefits

HDHP Use Doubles for Nonprofits

Originally posted by Kathryn Mayer on https://www.benefitspro.com

For many nonprofits, just having traditional medical coverage is so 2009. Consumer-driven plans, like HDHPs, are the new rage.

According to a survey from benefits administration firm PPI Benefit Solutions, among nonprofits, the use of traditional medical plans has decreased from 96 percent in 2009 to 83.6 percent in 2013. Meanwhile, the use of high-deductible health plans has nearly doubled, increasing from 22 percent in 2009 to 43.5 percent in 2013.

PPI surveyed more than 250 small to mid-sized nonprofit organizations nationwide.

“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,” said Karen Greco, director of marketing for PPI Benefit Solutions. “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.”

More nonprofits also are adding voluntary benefits, the report found. More employers, since 2012, are offering voluntary dental (offered by 20.3 percent of employers), life (49.7 percent), critical illness (9.6 percent), accident (34.5 percent) and transit reimbursements (24.3 percent) to their employees.

Other findings from the PPI report include:

Increased importance on automated benefits administration and enrollment: 77.2 percent of employers (up from 28.8 percent in 2012) consider benefits administration platforms to be very important and the 44.3 percent of employers (up from 9.6 percent in 2012) who believe employee self-service portals to be very important.

Help needed with understanding PPACA: 60.5 percent of nonprofits said they haven’t calculated the cost of compliance with regulations under the Patient Protection and Affordable Care Act.

Brokers wanted? Nearly 85 percent of nonprofit employers said they’re committed to delivering health and welfare benefits to their employees but are “seeking solutions to help manage costs and improve employee engagement.”