Nonprofits Continue Shifting Health Care Costs to Employees

by ERI Salary Surveys 19. June 2014 14:54

 

As nonprofits aim to attract and retain top talent under a ceiling of salary budget constraints, providing a competitive benefits package becomes increasingly important. The fourteenth annual Benefits in Nonprofit Organizations Survey, released on July 1, 2014, reports that nonprofits are paying approximately 70-75% of the total premium cost of medical coverage, on par with 2013 levels but substantially lower than employer contributions in 2012 (87%). Similar to employers in the private industry, nonprofit organizations appear to be continuing cost saving strategies by shifting more expenses on to the employees.

In addition to a strong focus on medical, prescription, and dental costs, the survey also reports data on life and disability insurance, retirement plan practices, paid leave, and other benefits.  Some highlights include the following:

  • Preferred Provider Organization plans remain the most prevalent type of medical benefits delivery in 2014.
  • At least one dental plan is offered to employees in 95% of responding organizations.
  • Sixty-eight percent of respondents offer vision benefits. Of those organizations, 34% offer vision as part of the medical plan.
  • Ninety-seven percent of responding organizations offer some form of retirement plan to employees.

Questionnaires for the Benefits in Nonprofit Organization Survey were designed and distributed in October 2013. Submissions were collected until March 2014, with an effective date of benefits as of January 1, 2014. Data for 122 medical plans covering over 13,500 employees were reported in the 2014 sample. Eighty-four dental plans were also reported. Data cuts are provided by type of nonprofit organization, organization size (by number of employees), organizational scope, and geographic region. Results may be purchased for $489 via http://salary-surveys.erieri.com

A companion benefit report published in April 2014, the Health Care Benefits Benchmarking Survey, which includes nonprofit organizations, government entities, and for-profit organizations (private and publicly traded), is also available online through ERI Salary Surveys.