December 17, 2017
 
Nearly all Bay State Nonprofits Offer Medical Insurance to Staff

September 23, 2017 — Nearly nine out of 10 nonprofit organizations in Massachusetts, and elsewhere in southern New England, offer some type of insurance benefits to their employees, at an average cost to the organization of $713 per employee, per month, according to a recently completed survey.

This $713 includes the cost of medical insurance, as well as dental, vision, life, long-term disability and long-term care, and any other optional types of insurance coverage, which will differ by organization depending on their offerings.

According to TSNE MissionWorks, a Boston-based nonprofit that provides management resources to other nonprofits that conducted the survey, 47% of nonprofits offer health maintenance organization (HMO) plans, while 36% offer Preferred Provider Organization (PPO) plans.

Findings were based on input from 342 organizations in Massachusetts, southern New England and Westchester County, New York, with annual operating expenses ranging from less than $100,000, to over $100,000,000, with average annual operating expenses of those nonprofits being $9,654,781.

Eleven percent of the organizations that offer HMO plans pay the entire premium cost for the employee, and 80% of the organizations pay at least 50% of the cost of HMO coverage for an employee plus spouse, while 88% of respondents pay at least 50% of the cost of HMO coverage for an employee plus dependent. Seventy-five percent of respondents pay at least 50% of the cost of HMO family coverage.

For organizations that offer PPO plans, 10% pay the entire premium cost for the employee, while 99% of respondents pay at least half of the premium cost for the employee. Seventy-three percent of respondents pay at least 50% of the cost of PPO coverage for an employee plus spouse; 84% of respondents pay at least 50% of the cost of PPO coverage for an employee plus dependent.

Eleven percent of the organizations surveyed do not provide health insurance, although 5% pay their employees a monthly stipend in lieu of medical insurance coverage.

The survey also found that the following types of insurance benefits are made available to employees, with percentages indicating the share of nonprofits offering the benefit:
  • Dental Care Insurance: 71%
  • Vision Care Insurance: 36%
  • Life Insurance: 61%
  • Short-Term Disability Insurance: 47%
  • Long-Term Disability Insurance: 53%
  • Long-Term Care Insurance: 18%
  • Voluntary Supplemental Plans: 24%
Forty-eight percent of respondents said they provide insurance benefits only to full-time employees.

Of the organizations who report having part-time employees, 50% indicated that these employees are eligible for medical insurance coverage as long as they maintain a minimum number of hours per week. This includes 30% who offer full benefits to qualifying part-time employees, who must work an average of 27 hours per week to be eligible, and 20% offering pro-rated benefits to qualifying part-time employees, who must work an average of 24 hours per week to be eligible. The remaining 2% provide insurance benefits (either full or pro-rated) to part-time employees regardless of their work schedules.

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