BAYSIDE -- By Meghan Vogel The Times-Standard- (Excerpt) Representatives of local nonprofit agencies attended a recent luncheon to discuss insurance legislation and trends. California's unstable economy and the scarcity of state grant funding, along with rising insurance and workers' compensations costs, have created a dire financial situation for many nonprofit agencies.

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The Northern California Association of Nonprofits hosted the luncheon on Wednesday to discuss how nonprofit agencies can work together to save insurance costs.

"Medical insurance is hitting us all very hard," said Meredith Clark of the California Association of Nonprofits Insurance Services. "California led the way in the HMO revolution, but we really maxed out on the savings."

Clark said health insurance is critical for keeping good employees. With the rising cost of insurance in the state, however, Clark said more and more employees are increasingly saddled with the higher costs. She said rates are increasing by 10 to 30 percent

"The increases are being passed onto the employees, which is difficult when salaries aren't increasing," Clark said. "Some families are paying $1,200 a month in health insurance, which is higher than some mortgages."

Nonprofit organizations are more likely to use health insurance more than the general business sector, Clark said.

"In general," she said. "The nonprofit sector is more highly educated than many sectors. There's more preventative health care measures used. Also, there is an aging population in the nonprofit sector."

Clark also went over current trends in how businesses are coping with the insurance predicament. Instead of eliminating health insurance coverage, many employers are utilizing higher deductibles and co-pays, eliminating dental, vision, disability and life coverages and are passing on increased premiums to their employees.

Rising workers' compensation costs have also contributed to tough financial times for California businesses.

"There has been a 134 percent rate increase over the last four years," Clark said. "The Legislature is doing a good job of trying to get things in line and we as employers need to help turn it around."

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