Although nonprofit employers believe offering health insurance to employees is valuable, many find that it is not cost-effective, according to a survey by Zane Benefits Inc.
Respondents say offering benefits is primarily for recruiting and retention; however, it has become too expensive, especially among nonprofits that are financially struggling. Among respondents with fewer than 50 employees, only 47 percent provide employer-sponsored coverage.
In an effort to battle costs, Zane Benefits recommends that nonprofits consider moving toward stand-alone health reimbursement accounts rather than traditional health plan models. HRAs are flexible, more sustainable for nonprofits and allow for more cost controlling.
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