1. 2016 Health Benefits Survey Presented by the NJ Business & Industry Association October 3, 2016

2. Summary of Findings Cost of health benefits still a significant issue for members Businesses passing more costs along to employees Eighty-five percent continue to offer insurance Health benefits costs increased by an average 10.5 percent High costs disproportionately fall on small businesses (1-24 employees) Members continue to make sacrifices to offer coverage Offer coverage to attract and retain employees Employers are more likely to offer low-cost plans Employers are offering more voluntary benefits such as dental coverage and vision 2

3. Health Benefits Ubiquitous Eighty-five percent of NJBIA members continue to offer health benefits

4. Reasons for Offering Health Benefits 4

5. Cost Containment 5

6. Cost Sharing Employers pay 74 percent of the total cost of employee health benefits. 6

7. Cost Sharing 34 percent of members are now offering less expensive, high deductible health plans compared to 24 percent in 2014 7

8. How Businesses Paid for Higher Costs 8

9. Types of Health Plans Offered 9 Plan Type20162014 Point of Service/Preferred Provider Organization 65%53% HMO/EPO47%55% High Deductible Health Plan34%24% Other6%5% Multiple Employer Welfare Association2%N/A

10. Costs Still Rising Overall, benefits costs are rising by an average of 10.5 percent The smallest members saw their costs rise by an average of 12.3 percent

11. Cost of Health Plans Single 2016: $7,044 2014:$7,416 Husband-Wife 2016: $14,076 2014: $15,660 11 Parent-Child 2016: $11,628 2014: $11,352 Family 2016: $17,580 2014: $19,116

12. Benefit20162014 Dental Coverage 63%46% Vision Benefit 47%26% Flexible Spending Account 30%18% Health Savings Account 24%17% Prescription Discount Card 23%26% Voluntary Benefits 12

13. Wellness Programs Offered 13

14. Conclusion Members challenged in ability to provide benefits at affordable rates Continue to provide benefits and take a hit to bottom line Good benefits attract and retain employees Double digit rate increases on average—highest for smallest businesses Members passing more costs along to employees The cost of health benefits continues to be biggest problem for NJBIA members 14