Large employers in New Jersey have scaled back on their contributions to workers’ health insurance plans more than in any other state, according to information from the ADP Research Institute.
Employees find themselves picking up the balance of the tab, which could be significant as New Jersey already has some of the nation’s highest health insurance rates.
According to the ADP study, monthly health premiums currently are about $968 at large New Jersey companies. Nationally, the average is $832, more than 16% lower than the New Jersey rate.
The national average is 16 percent less, at $832 a month, ADP’s researchers found. They examined data from 175 U.S. companies that employ 1,000 or more people.
According to ADP, the employer portion of premiums will rise, as employers prepare to implement the Affordable Care Act.
The Obama administration recently announced it was delaying penalties by one year for large employers (50 or more workers) that don’t follow the law requiring them to provide health insurance for full-time workers, deemed those who work 30 or more hours per week.
ADP found that the average employer contributions for health plans offered to workers under 30 with no dependents has risen to 77.5% of the cost of the plan, which is 1.4% higher than it was in 2010.
Meanwhile, employer contributions have grown for the health plans offered to younger workers and those with no dependents, researchers found. The average contribution for workers under 30, for example, is 77.5 percent of the premium, which is 1.4 percent more than it was in 2010, ADP found.
However, in New Jersey, ADP researchers found large companies scaled back contributions to worker plans by 2.8%.
On the bright side, however, ADP reported that New Jersey’s health insurance costs have grown by only 6.9% during the past three years, the slowest in the nation. The average nationwide for large employers was 13.9%.
Large employers in NJ cut back on employee health plan contributions via IFAwebnews.com .
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