Healthcare Costs Increase for Not-For-Profits

January 7, 2010    

The 2009 Compensation Data Not-For-Profit results showed the average premium increase was 10 percent for all plan types this year.

Compounding economic pressures, most U.S. not-for-profit organizations saw an increase in their health insurance premium. Although the average premium increase had decreased last year, the numbers are up again. The 2009 Compensation Data Not-For-Profit results showed the average premium increase was 10 percent for all plan types this year.

When comparing plans in 2009, 60.7 percent of organizations offering PPO plans saw an average increase of 10.6 percent. Those offering HMO and POS plans had average premium increases of 9.6 and 10.2 percent, respectively. HDHP plans had increases of 7.9 percent.

“Medical plans continue to be a source of scrutiny, as high health insurance costs are cutting into organizations’ bottom lines,” said Amy Kaminski, manager of marketing programs for Compdata Surveys. “Organizations continue to search for ways to reduce healthcare costs, but often a portion of the higher costs must be passed on to employees.”

To contain rising costs, U.S. not-for-profits utilized a variety of methods. The most highly used was a network of healthcare professionals at 76.5 percent in 2009, while coordination of benefits was employed by 73.8 percent. Utilization reviews were prevalent, as 51.4 percent of organizations used them to contain costs.

The survey results showed 56.2 percent of companies increased the employee portion of the premium in their efforts to reduce costs.v  Currently, 40.8 and 29.2 percent of organizations increased deductible levels and employee co-insurance levels, respectively.  On average, not-for-profits contribute 10.2 percent of payroll toward the cost of health benefits, which is nearly the same cost to provide all of the following benefits: dental, life, retirement, disability and other non-mandated benefits.

About the Survey
Compensation Data Not-For-Profit 2009 contains data on over 100 industry-specific job titles and more than 250 benchmark titles ranging from entry-level to top executives. Data is collected annually from employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of March 1, 2009.

Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988.  For further information about the compensation and benefits surveys, contact Amy Kaminski at (800) 300-9570.

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