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New Jersey Affordable Health Benefits Survey: Summary of Findings

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Authors
Cantor, Joel C.
Chou, Jolene
Koller, Margaret
Cohen, Michael
Anderson, Michelle
Date of Publication
September, 2022
Publication Type
Report
Focus Area
Access and Coverage
Source
Rutgers Center for State Health Policy

Executive Summary 

For decades, health reimbursement arrangements (HRAs) have allowed employers to help fund employee health care expenses on a tax favored basis to complement or substitute for traditional employer-provided health insurance. Recently, two new options—the Qualified Small Employer HRAs (QSEHRA) and Individual Coverage HRAs (ICHRA)—were created to expand the flexibility and adoption of HRAs, including their use in the non-group health coverage market. In light of the concern over New Jersey’s shrinking and unstable small group market, the New Jersey Affordable Health Benefits Survey provides a glimpse into New Jersey employers’ familiarity with QSEHRAs and ICHRAs, the extent of current and planned adoption, and possible reasons for those who have chosen not to offer this option. The survey respondents make up a diverse group of firms in terms of industry types, size, and geography, though larger and health insurance-offering employers are likely over-represented in our sample. Most respondents (86%) report offering health care coverage; the offer rate is high (81%) even among firms with fewer than 50 employees. Fewer than 10% of the firms currently—or plan to in the next two years—offer either ICHRA or QSEHRA, and the actual enrollment among their employees varies greatly from 0% to 100%. Among those currently not offering these HRA options, the most frequently cited reason was lack of familiarity. Smaller numbers of respondents also indicated brokers’ guidance and perceived employee preferences as reasons against offering. 

While our study cannot be fully generalized to New Jersey or other parts of the country, the findings offer important insights on the perspectives of businesses with respect to providing defined-contribution style health care coverage to their workers. Moreover, the survey may be adapted as a useful tool to monitor the changing sentiments and practices regarding coverage offerings by employers within the state and beyond.