Business owners and human resource executives grappling with ways to keep their employee health benefits both competitive and cost effective found out how their plans compare to others today at a breakfast seminar at Embassy Suites Parsippany. Scott Rappoport, a 25-year veteran of the employee benefits industry and President of Benefit Sources & Solutions in Bound Brook, presented the results of the 2007 United Benefit Advisors (UBA)/Benefit Sources & Solutions Health Plan Benchmarking Survey, the nation's largest and most comprehensive survey of plan design and plan costs.

Mr. Rappoport told participants that the average annual health plan cost per employee is $6,881 (medical only coverage), with an average employee cost of $3,110 and an average employer cost of $3,771 per employee, according to the survey, which evaluated responses from 16,485 health plans sponsored by 11,723 employers nationwide who employ nearly 1.9 million people (approximately 4.5 million total lives).

The survey also confirms that higher premiums (nearly 14% higher) for family health plans in the Northeast (particularly New Jersey) are largely attributed to those plans having richer benefits than any other region of the country. Specifically, 71.0% of plans in the Northeast have no single deductible, and 82.1% have no in-network coinsurance, versus roughly 30% for plans in other regions.

"Attracting and retaining quality employees are among the top human capital challenges* facing organizations today," observes Rappoport. "Employers know that the benefits they provide must protect their most valuable asset -- their employees. Yet, they are challenged by a host of issues relating to employee benefits: rising costs, employees' lack of appreciation for the benefits provided, and employees' lack of knowledge about the true value of the benefits. Add to that the pressure of meeting ongoing government mandates and regulatory oversight and you've got some seriously frustrated business owners and human resource managers."

While the majority (54%) of employers offers one type of health benefit plan, a growing number (34%) offer two types of plans -- the most popular being a Point of Service (POS) Plan. Health Reimbursement Accounts (HRAs) and Health Savings Accounts (HSAs) (1.4%) are not widely utilized, according to Rappoport.

What can companies do to control the rising costs of employee health benefit plans?

"There is a major effort to keep employee health benefit costs under control through wellness programs," comments Rappoport. "Considering that 43% of all health care claims result from chronic diseases, it makes sense to start at the root of the problem and encourage healthy behaviors among employees. More and more plans are offering employees health risk assessments and incentives and rewards for meeting certain guidelines."

"Today," he quipped, "'working' includes 'working out'."

Benefit Sources & Solutions provides mid-market employer groups with a personalized and multi-faceted approach to managing their employee benefit programs. From medical insurance to 401K planning, account managers at Benefit Sources & Solutions can identify how a client's benefit program compares to other employers in their region and industry, determine appropriate benefit levels and develop the most cost-effective plan to suit the client's needs. Value-added services include complete administration and compliance support, communicating all aspects of the benefits program to the workforce, and a host of technology-based systems designed to keep companies competitive in the marketplace, maintain the best possible rates and enhance employee appreciation and morale.