Health insurance costs for New Jersey employers soared by an average of 11.3 percent to $7,561 per covered employee last year, according to NJBIA’s 2007 Health Benefits Survey. Given the effects of compounding, the total average cost has grown by a staggering 80 percent over the last five years.

The survey found that fast-rising costs have taken a toll on the State’s smallest businesses (those with 2-19 employees), which are dropping coverage in growing numbers. Eighty-two percent of businesses with 2-19 employees provided coverage in 2006. This was down from 87 percent in 2004, and a high of 92 percent in 2003. When those employers who no longer provide coverage were asked why, most said it was simply too costly. For companies with 20 or more employees, however, 97 percent reported providing coverage the 2007 survey found.

“Health insurance costs are rising at more than three times the rate of inflation,” NJBIA President Philip Kirschner said during a Trenton news conference to release the results. “It’s clear that the pain of rising costs is hitting the smallest businesses the hardest, and this has forced some to drop coverage altogether.”

The average cost of $7,561 per employee included coverage of both full-time employees with no covered dependents and full-time employees with covered spouses and/or dependents. This was the amount paid by the employer and did not include any share of the premium costs paid by employees.

Looking ahead, survey participants anticipate that the cost of health insurance will increase by an average of about 10 percent this year, less than the 2006 increase of 11.3 percent, but a double-digit increase nonetheless.

In coping with the soaring costs, a majority of respondents took a number of actions. Thirty-four percent changed plans, and 21 percent changed their insurance carriers. Thirty-two percent raised employee medical co-payments; 32 percent raised employees’ deductibles; and 19 percent raised employees’ premium contributions. Finally, 18 percent limited wage and salary increases, 10 percent eliminated some types of medical coverage and 8 percent scaled back their hiring plans.

NJBIA's 2007 Health Benefits Survey was mailed in January 2007 to a random sample of the Association’s member companies employing two or more people. The results are based on the first 1,148 valid responses. For more information, contact Chris Biddle at ext. 227.

Governor’s Key Advisors Promote Property Tax Reform, Pledge Healthcare Reform at Meet the Decision Makers Event—Two top advisors to Governor Jon Corzine—Policy Counsel Heather Howard and Chief Legal Counsel Ken Zimmerman—talked about the long-term reforms to New Jersey’s property tax system and pledged to address the high cost of health insurance during the second of NJBIA’s Meet the Decision Makers series. Speaking to 100 business people, Howard said health insurance coverage for all New Jerseyans remained a long-term goal, but the administration’s immediate focus will be on reducing costs through reforms to the private health insurance market and better management of chronic diseases. “We know how high costs have been and how families and businesses have struggled under those costs,” Howard said.

Zimmerman said some of the recently enacted property tax reforms will provide long-term benefits. He singled out the 4 percent cap on annual property tax increases and the new State Comptroller as reforms that will help keep property taxes down in the future.

Responding to a question about paid family leave, Howard indicated the Governor will probably support leave legislation in the future, but wants to work with the business community on the details. “The Governor has been very interested in helping families balance work and family life throughout his career,” Howard said.

Commerce Commission Reorganization Unveiled at Hearing—The Corzine administration on April 11 unveiled a plan to reorganize the NJ Commerce, Economic Growth and Tourism Commission to be more closely aligned with the Office of Economic Growth (OEG). The plan, presented to the Senate Budget Committee by OEG Chief Gary Rose, would move the commission’s travel and tourism functions to the Department of State, while the business retention and recruitment efforts would remain with the Commission. The secretary of Commerce position would be eliminated and the Commission would be run by an executive director with more direction from the Commission’s board, which would be chaired by Rose.

NJBIA is pleased the plan maintains the Commerce Commission’s important functions, particularly in helping employers navigate the State’s bureaucracy. While NJBIA awaits the details of the plan, the Association is pleased that the Commerce Commission would not be eliminated. For more information, contact Art Maurice at ext. 247.

Don't Miss the Next Two Meet the Legislative Leaders Briefings: April 17 in Central Jersey and April 25 in North Jersey—NJBIA Meet the Legislative Leaders breakfasts will continue with Central Jersey legislators on Tuesday, April 17, at Forsgate Country Club, Monroe Township, and North Jersey legislators on Wednesday, April 25, at the Holiday Inn in Newark.

The panel discussion at the Central New Jersey event will feature Senate Health Committee Chairman Joseph Vitale, Senate Republican Leader Leonard Lance, Assembly Deputy Speaker John Wisniewski and Assembly Republican Conference Leader Peter Biondi.

The North Jersey event will feature Senator Joseph Doria, vice chairman of the Senate Economic Growth Committee, Assembly Republican Leader Alex DeCroce, Senate Republican Whip Tom Kean, Jr., and Assembly Majority Conference Leader Joan Quigley.

Each event will begin at 7:30 a.m. with registration, breakfast starts at 8:00 a.m. with an overview by NJBIA of major legislation affecting employers, followed by the panel of legislative leaders who will offer their thoughts and answer your specific questions. These are also great networking events. The program will end at 10:00 a.m. The cost is $69 per person per event for NJBIA members, $105 for nonmembers. For more information or to register, contact Katie Wittkamp at 609-393-7707, ext. 239.

Meet The Decision Makers: Meet State Treasurer Bradley Abelow—At this May 1 event, you will hear from State Treasurer Bradley Abelow. The breakfast will run from 7:30 a.m. to 10:00 a.m. at Holiday Inn, East Windsor. The cost for the breakfast is $69 per person for NJBIA members and $105 for nonmembers. For more information, or to register, contact Katie Wittkamp at 609-393-7707, ext. 239. Contact Sherry Esteves at ext. 219 to become a sponsor.

NJBIA-Merrill Lynch Economic Forum: CEOs Speak Out, May 4—NJBIA has teamed up with Merrill Lynch to bring you the NJBIA-Merrill Lynch Economic Forum: CEO's Speak Out. The Forum will bring together some of the State’s leading business people to talk about the direction of New Jersey's economy and some of its major industries.

This early morning event will feature a keynote address by Michael Santoli, Associate Editor for Barron's, The Dow Jones Business and Financial Weekly followed by a panel of industry leaders including Douglas Conant, President & CEO of Campbell Soup Company; William Marino, President & CEO of Horizon Blue Cross Blue Shield; and Ara Hovnanian, President & CEO of Hovnanian Enterprises.

The Forum will be held at the Sheraton at Woodbridge Place, Iselin from 8:30-11:00 a.m. The cost is $69 per person for NJBIA members and $105 for nonmembers. For more information, contact Sherry Esteves at 609-393-7707, ext. 219, or register online.

Taking Charge of Your Workers’ Comp Costs: Employer Safety Strategies That Work, May 16—This half-day seminar will be held at the Pines Manor, Route 27 in Edison. It will feature a panel of business owners who have successfully lowered their workers’ compensation insurance premiums by improving safety at their workplace. They will share their success stories and offer real-world solutions that have already been proven to be effective in reducing costs.

Registration and continental breakfast begin at 8:30 a.m. The program runs from 9:00 a.m. – 12:15 p.m. The cost is $109 per person for NJBIA members, $139 for nonmembers. For more information or to register, contact Katie Wittkamp at 609-393-7707, ext. 239.

New Good Neighbor Awards Advertising and Sponsorship Opportunities—The New Good Neighbor Awards annually recognize the best and most exciting commercial and industrial development projects in the State of New Jersey.

Capitalize on the high visibility of this prestigious award by taking advantage of the Advertising and Sponsorship opportunities we are offering for 2007.

• Co-sponsor the June 1, 2007 luncheon honoring the winners.

• Advertise in the June 2007 issue of New Jersey Business Magazine.

• Maximize your visibility and save money by signing up for both.

For more information on sponsorship contact Sherry Esteves at 609-393-7707, ext. 219. For more information on advertising opportunities, contact Vincent Schweikert at 973-882-5004, ext. 110.

Raise Your Visibility. Become an Event Sponsor—Golf & Tennis Day. NJBIA's Meet the Decision Makers series. First-rate events like these offer your company an excellent opportunity to reach their target audiences and heighten their visibility as an event sponsor. Learn more about becoming an NJBIA sponsor online or contact Sherry Esteves at 609-393-7707, ext. 219.