Newsletter Articles

iNews Articles 2010

Wellness Awareness

Glossary of Terms

To access, click on:

Nonprofit Resources is a wholly owned Subsidiary of Colorado Nonprofit Association

Health Insurance Trends

The United States is one of the few developed countries in the world that does not have a national health care system.  Nonetheless, for years the U.S. system delivered health care that was the envy of the world.  But there was a catch - you only got top quality care if you could pay for it or had insurance to pay for it.  Today, with insurance companies seeking to reduce costs, with patient loads skyrocketing, and with many public and nonprofit hospitals disappearing, many believe the U.S. health-care system is in crisis.

For most citizens, their employer will provide health insurance and decide what benefits will be offered and at what price.  Having a job is the health-care plan.  Nonprofit employers who do not offer a plan may find themselves at a big disadvantage in terms of attracting and retaining an educated and well-qualified workforce.

While statistics change from year to year, it seems that each year brings increases in the cost of health insurance, even for those nonprofits that are participating in group plans with other employers. To soften the blow, employers need to educate employees that health care is a benefit that the employer subsidizes.  Technology can help an employer control costs but it can only help, it is not a cure.  Following are some things every nonprofit should consider to help manage the cost of health insurance:

1. Review the structure of your program and the benefits provided.  You may decide to change the contribution rate for your employees, increase deductibles or co-pays, or add a plan that allows employees to pay health care costs on a pre-tax basis.  Many nonprofits are reluctant to reduce benefits by requiring staff to bear more of the burden even though it may make economic sense to do so.  It is important to consider and communicate the economic cost of your nonprofit's health insurance plans.
   
   
2. Harness technology to reduce administrative costs.  Move your benefits administrative paperwork online.  You may set up a secure area on your website for staff to access documents such as employee handbook, plan description, directions on "how to submit a claim" and links to insurance company claim forms.  Communicating changes in the plan to the insurance company via a web program reduces errors, cuts paperwork and speeds transactions. 
   
   
3. Work with employees to manage their own health-care costs.  Take steps to make certain that employees understand the coverage and services available under their health plan.  Doing so will enable employees to make better decisions about their health care.  Simple training for all staff on workplace safety can reduce claims.
   
   
4. Consider consumer driven health care.  Health plans that allow members to use personal Health Savings Accounts, Health Reimbursement Accounts or Flexible Spending Accounts to pay routine health care expenses directly will allow the employer to purchase a high-deductible health insurance policy.  Premiums are lower than other traditional policies and the employee has greater control over their own health budget.
   
   
5. Choose a provider that offers a disease management program.  It will provide educational programs, nurse support and intervention, and health monitoring and information systems.
   
   
6. Take another look at absenteeism.  If this is a problem in your organization, review the performance appraisal process.  Do employees know that being dependable in their attendance is a minimum requirement of keeping their job?
   
   
7. Consider employee wants and needs when designing or revisiting your program.  Employees may value certain benefits more than others.  Survey employees about the various benefits offered and their value.  Give employees a breakdown, on an annual basis, of what their benefits are worth.  Include the employer's share of health, life and disability insurance, pension contribution and vacation. 

The staff at Nonprofit Resources has many years of experience helping organizations to determine the appropriate coverage. Give us a call if you would like to talk with us about our insurance programs. 

Let us address one of your questions!