profit Small organizations non-face unique challenges in hiring and retaining employees. With limited resources, management teams must be strategic about how to allocate salaries and benefits dollars. 
Regarding health benefits, cost control has become a major challenge. Since 1999, the national average cost to cover employees with group health insurance increased by 220 percent. This represents an average increase of nearly 14 percent per year (Kaiser Family Foundation, 2015).
The Department of Health and Human Services Agency estimates that there were more than 500,000 non-profit employers in the United States in 2013. Among these nonprofit organizations:
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Nearly half have fewer than 10 employees; and two-thirds have fewer than 50 employees.
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Only 47% of non-profit organizations with fewer than 50 employees provided coverage of health insurance employees.
With limited access to capital, small nonprofits often feel ill to offer or maintain health insurance coverage for their employees -. even if it is something of leadership, the Board of Directors, employees and the donor value
So what are the key issues profit should ask before choosing a health insurance?
1. Must provide health benefits, or not?
non-profit organizations, members of the Board of Directors and employees are all agreed that the benefits of health play an important role in employee compensation, recruitment, retention and satisfaction . The question is not usually should , we offer health benefits, but can afford to
However, a non-profit believes offer health benefits Here are some important considerations:
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health benefits can be a cost effective way (and tax free) to increase employee compensation.
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If you are a non-profit with fewer than 50 employees full time equivalent, you will not be fined for not offering an insurance policy qualified health. In other words, the warrant requirement of the health reform employer does not apply.
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The health benefits are a way to show that you care about your employees and keep morale. And co nsidering recruitment, training, and the general cost of losing and replacing an employee, to invest in advance health benefits can actually save money nonprofit in the long term.
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In recent years, new health insurance solutions for nonprofits and small employers have emerged that are more affordable health benefits. See # 3 below.
2. How can you afford to spend?
Now that you know you want to offer some form of health benefits for employees, which can afford to invest?
If you provide currently employed health benefits, you may already have a budget for health benefits. But if you're like most small nonprofits that do not offer health benefits, it may be your first time considering options.
Many nonprofits decide how much they can budget for health benefits and consider There options. Other nonprofit organizations evaluate current insurance rates to build their budget.
For example, in 2015 the average group health insurance premium for a single employee was $ 6,251 per year ($ 521 per month), and for family coverage, $ 17,545 per year ($ 1,462 per month). The premiums have more than doubled since 02, and an increase of 220 percent since 1999. The premium is usually shared between the employer and the employee, and if you qualify for tax credits for small businesses you can find cheaper rates through your Exchange Store state.
because of the high cost of group health insurance, non-profit organizations also look and compare the cost of individual health insurance rates / family. A popular strategy is for non-profit organizations to individual health insurance with a pair placement defined contribution (discussed below).
For example, in 2014 the national average of individual health insurance was $ 346 / month for individual coverage and $ 667 / month for family coverage. These national averages do not include discounts could be eligible through the premium tax credits. In the federal market to function (healthcare.gov), 87 percent of those who have chosen a health plan in 2014 received tax credits on premiums and paid an average of $ 82 / month
Related :. FAQ - How much is the individual health insurance?
3. What health insurance strategy should we choose?
Today, there are new options for non-profit health benefits. Most choices fall into two strategies: a traditional group health insurance plan and a defined contribution health plan
Group Health Insurance Plan :. Also known as "health insurance employer-sponsored" or "JOB- insurance", a group health plan generally covers all employees and their family members. These plans are generally uniform in nature, offering the same benefits to all employees or group members. group health insurance is selected and purchased by the non-profit, and employees are usually invited to share the cost of the premium. In addition, there are minimum requirements for participation and a minimum percentage of the non-profit contribution must for employee premiums
defined contribution health plan :. With a strategy defined contribution, the nonprofit offers employees a health care allowance to spend on their own health insurance policies. A defined contribution health plan is as a business expense account for health insurance. The plan can be set up to provide different amounts of allocation by type of employee (eg: $ 400 / month to program managers and $ 250 / month for administrative staff), and there is. no minimum amounts of assessment or the conditions of participation
to learn more about this approach, download this free guide nonprofit individual repayment of health insurance.
within these two main strategies, there are many variations. For more, see:
- How Non-Profits can offer health insurance
- Comparison of Individual Health Insurance vs. Group Health Insurance
Conclusion
in the end, the best approach to health insurance is the one that makes the recruitment of your organization and maintenance goals, meets benefits expectations of employees and working within short-term and long-term budget of the organization.
Editor's note: This post was updated with the latest information on health insurance. The article was published in November 2013.
What issues do you think should all at nonprofit ask before choosing a health insurance? Or, what questions do you have? Leave a comment.
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