New Jersey business owners continue to face challenges with healthcare coverage costs, according to the New Jersey Business & Industry Association’s (NJBIA) 2025 Health Benefits Survey. The survey found that while 80% of respondents reported an increase in average per-covered employee healthcare costs from their previous renewal period, most businesses are still committed to providing coverage for their employees.
Of those reporting increased costs, 52% saw hikes between 1% and 10%, and another 42% experienced increases ranging from 11% to 25%. Despite these rising expenses, 82% of the 345 surveyed businesses said they offer healthcare coverage to full-time employees. This is four percentage points higher than results from NJBIA’s surveys in both 2018 and 2021, which took place during the COVID-19 pandemic. However, the rate is lower than a decade ago when coverage was offered by as many as 87% of employers in the 2014 survey.
“In order for employers to best position themselves from a point of strength and competitiveness, they need to have the best workers they can retain,” said NJBIA President and CEO Michele Siekerka. “We also know how much of a priority health coverage is for full-time workers.
“At the same time, there doesn’t seem to be a reversal in health insurance costs on the horizon with medical inflation, improved technologies, an aging population and fewer insurance companies in the market.
“So, it’s imperative that employers keep a keen eye on health costs, to try to find healthcare savings when they can or to try to reduce operating costs elsewhere to maintain healthcare coverage,” Siekerka said.
Among those not offering healthcare insurance (18%), reasons included company size (53%), cost concerns (37%), and exemption from employee coverage mandates (26%). Of those who do provide health insurance for full-time staff, only 16% extend it to part-time or temporary workers.
Looking ahead, most respondents indicated continued commitment: 79% plan to offer healthcare next year. Still, some uncertainty remains—9% intend to discontinue coverage while another 12% are undecided. Among those dropping plans next year, cost was cited by 86%, with another factor being insufficient employee participation at 24%, up from just 14% in NJBIA’s previous survey in 2021. Additionally, one-tenth believe Affordable Care Act penalties are less expensive than providing insurance.
The survey also detailed premium rates as of February 2025: For single plans, nearly one-third reported monthly costs of $1,000 or more per member; family plans saw even higher expenses with over two-fifths citing monthly premiums above $2,000 per member.
When asked about plan types selected by employees at companies offering benefits: Preferred Provider Plans (PPOs) led at half of all enrollments; High Deductible Health Plans (HDHPs) followed at a quarter; Exclusive Provider Organization (EPO) and Point of Service (POS) plans each accounted for roughly one-eighth; Health Maintenance Organizations (HMOs) made up less than one-tenth overall.
In firms with fewer than 25 employees PPOs were most common; among larger firms HMOs and HDHPs were more prevalent.
Voluntary benefits offerings showed some changes compared with past years. Dental benefits rose notably—69% now offer them compared with just under six out of ten four years ago—and vision benefits also increased significantly since prior surveys. Prescription card discounts declined slightly since last measured. Use of Health Savings Accounts climbed seven percentage points since NJBIA’s last report while Flexible Savings Accounts also grew modestly.
Factors influencing benefit decisions included company cost (82%), employee demand (43%), and competitor offerings (34%).
The NJBIA conducted its annual online survey through Signet Research during May 2025 among management representatives from New Jersey companies. The sample size was 345 respondents with a margin of error plus or minus five-point-three percent.
