Employee Medical Benefits Summary New Jersey

Tax Advantaged Accounts

Small business owners in New Jersey can help their staff save money and pay bills on time by offering tax-optimizing healthcare savings accounts (HSAs) or healthcare flexible spending accounts (FSAs). Both an HSA and an FSA are excellent ways for employees to manage their medical expenditures while lowering the employer's cost. Both an HSA and an FSA are fantastic methods for small businesses in New Jersey to assist their workers in managing their medical expenses in the most cost-effective way possible. 29% of employers in New Jersey offer an HSA, while 44% provide an FSA.

Dental and Vision

When looking at your comprehensive employee benefits package, dental and vision benefits are two of the most important features. Only 32% of small businesses provide vision coverage, whereas 43% of small enterprises provide dental benefits. This is significantly lower than what we observe among major employers (77% dental usage and 75% vision usage).

Large Employer Guide to Medical Benefits

Cost & Coverage

In the state of New Jersey, 6,000 large employers provide medical coverage to over 311,000 individuals, with 73% taking advantage of the benefit. Larger employers, compared to smaller ones, are generally able to provide most comprehensive medical benefits. On average, New Jersey employers cover 81% of the monthly premium for single employees and 81% of the premium for families. On the employer side, this equates to a monthly premium average of $542 per month for singles and $1572 for families. For employees, this costs an average of $123 per month for single employees and $361 for families, with costs ranging anywhere from $88 each month for a family at the 25th percentile to $176 for a family at the 75th percentile. However, if you’re lucky enough to work with a few select New Jersey large employers, 14.5% cover all medical expenses for single individuals, and 11.4% cover all expenses for families.

Plan Design & Cost

Employee demographics can influence plan designs. 43% of enrollees at New Jersey businesses are enrolled in PPO plans, 19% are in HMO plans, and 35% are in High Deductible Health Plans. The plan type influences the extent of coverage available from doctors and hospitals, as well as copays, deductibles, and other factors.

Tax Advantaged Accounts

It's critical for employers to give employees the ability to manage their medical expenses tax-advantaged. The Flexible Spending Account (FSA) and Health Savings Account (HSA) are two of the most popular methods. An HSA is offered by 49% of large New Jersey businesses, and an FSA is offered by 68%.

Dental & Vision

Larger employers offer a wider range of dental and vision plans at a higher rate than smaller ones. In New Jersey, 67% of big companies provide dental insurance and 82% utilize the benefit, whereas 48% provide vision coverage and 75% use the benefit.

Medical Benefits Considerations

Whether you're a small or large employer in New Jersey, selecting a broker to design your plan's benefits is a crucial choice. If you want a list of employers in your region that specialize in medical plans, contact us today.

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