ADP research shows that health insurance costs are high for New Jersey residents
New research from Automatic Data Processing (ADP), a payroll processor and benefits administration firm serving the U.S. insurance industry, shows that New Jersey residents that work for large companies pay more for their health insurance than those in other states. The research suggests that even consumers in other states that work for the same company as their New Jersey counterparts have lower out-of-pocket expenses when it comes to their health insurance coverage. The new research highlights a dichotomy that is not often paid attention to in the health insurance industry, largely due to the other factors that make health insurance such a controversial issue in the U.S.
Employees of large companies pay more for their coverage in New Jersey
According to ADP, the average New Jersey employee that works for a company with more than 1,000 workers pays $239 for their health insurance each month. The research shows that this is the case for 300 large companies throughout the state, many of whom operate in other states as well. New York workers that work for larger companies, on the other hand, pay an average of $195 for their health insurance coverage, while those in Arizona pay approximately $179 in monthly premiums.
Reasons for higher rates are not entirely known
The exact reasons behind the disparity are unclear. ADP notes that health insurance coverage and its costs are affected by many factors, including age, access to benefits, prior health problems, and state regulations. States with extensive health insurance regulations tend to see higher health insurance premiums, as these regulations impose higher administrative costs on insurers. These costs typically trickle down to consumers who see them in the form of higher health insurance premiums. Another factor could be large companies pulling back the amount of money they are willing to devote to the health insurance plans they offer employees. Lower contributions from their employers mean that workers have to pay more for their coverage.
ADP investigates health insurance costs throughout US
The research comes as part of ADP’s new effort to investigate the cost of health insurance throughout the U.S. The firm is keen to examine the state of the current health insurance industry and how it is being influenced by the Affordable Care Act. Next year, the federal health care reform law becomes fully actualized, which is likely to have a major impact on the cost of health insurance throughout the country. In many states, the health care law may be making coverage more expensive than it had been in the past.