Monday, May 16, 2005
HSAs an option for struggling non-profits
[Carol Tice, "Health-care costs shock nonprofits," Puget Sound Business Journal, 16 May 2005.]
A tight economy combined with rising health care costs is putting mnay non-profits in a vice:
A national study conducted by the Center for Civil Society Studies at the John Hopkins Institute for Policy Studies and released last November charts the rising costs of health care for nonprofits.
Skyrocketing costs are forcing charities to scale back health benefits, cut full-time staff who qualify for health care, or make cuts to other employee perks as they grapple with how to continue insuring employees without cutting programs.
Health-care expenses are hitting nonprofits disproportionally hard for several reasons.
Charities offer more benefits in part because nonprofits often pay relatively low salaries. To compensate, groups have historically offered substantial health benefits, often paying 100 percent of premiums while few businesses still do.
In the Civil Society study of more than 250 charities, 93 percent offered health benefits, compared with 63 percent of a similar group of businesses.
Non-profits looking for answers should explore the options available through consumer-driven health care plans such as health savings accounts. Rather than cutting salaries or dropping coverage entirely, the lower premiums of a catastrophic plan combined with the savings potential of individual accounts could be a win-win situation.
[Devon Herrick, "Health Savings Accounts: The Future Of Health Care For Kansans," The Flint Hills Center, 14 February 2005.]
[Carol Tice, "Health-care costs shock nonprofits," Puget Sound Business Journal, 16 May 2005.]
A tight economy combined with rising health care costs is putting mnay non-profits in a vice:
A national study conducted by the Center for Civil Society Studies at the John Hopkins Institute for Policy Studies and released last November charts the rising costs of health care for nonprofits.
Skyrocketing costs are forcing charities to scale back health benefits, cut full-time staff who qualify for health care, or make cuts to other employee perks as they grapple with how to continue insuring employees without cutting programs.
Health-care expenses are hitting nonprofits disproportionally hard for several reasons.
Charities offer more benefits in part because nonprofits often pay relatively low salaries. To compensate, groups have historically offered substantial health benefits, often paying 100 percent of premiums while few businesses still do.
In the Civil Society study of more than 250 charities, 93 percent offered health benefits, compared with 63 percent of a similar group of businesses.
Non-profits looking for answers should explore the options available through consumer-driven health care plans such as health savings accounts. Rather than cutting salaries or dropping coverage entirely, the lower premiums of a catastrophic plan combined with the savings potential of individual accounts could be a win-win situation.
[Devon Herrick, "Health Savings Accounts: The Future Of Health Care For Kansans," The Flint Hills Center, 14 February 2005.]
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