Insurance organizations are also vulnerable to medical insurance costs as the newly released 2010 Compensation Data Insurance survey results show insurance employers had an average premium increase of 9.6 percent.
Although legislation was recently passed to temper the costs of providing medical care, insurance companies are increasing premiums in an effort to keep up with the rising demand of healthcare. Insurance organizations are also vulnerable to medical insurance costs as the newly released 2010 Compensation Data Insurance survey results show insurance employers had an average premium increase of 9.6 percent. More than half of survey respondents report paying more than $9,600 annually for an employee plus family plan.
Employee plus spouse plans cost employers more than $7,200, annually. Insurance organizations pay more than $2,400 per year for employee only coverage, with just over 40 percent of employees paying more than $900 per year for the same coverage. Although employees have become responsible for paying a larger portion of their medical insurance premiums over the last few years, employers still cover more than 70 percent of the total cost.
“Employers have been feeling the financial pinch of increasing medical costs for several years now,” said Amy Kaminski, director of marketing for Compdata surveys, the nation’s leading pay and benefits survey data provider. “The economic downturn of the last couple of years has only amplified financial concerns, causing organizations to increase their efforts to find ways to mitigate some of the costs of providing medical coverage for their employees.”
To reduce costs, insurance companies employed a variety of methods. Increasing the employee portion of the premium was most prevalent at 63 percent, with an increase in deductible levels following at 48.5 percent. The results showed that 29.7 percent of organizations increased employee co-insurance levels. Offering a choice of deductible levels was utilized by 15.2 percent of survey respondents.
Cost containment measures are also a popular option as 90.7 percent of organizations surveyed use coordination of benefits to bring costs in line. More than 60 percent of insurance organizations employ utilization review, disease management and pharmacy benefit management to contain costs.
About the Survey
Compensation Data Insurance 2010 contains data on nearly 100 industry-specific job titles and more than 250 benchmark titles ranging from entry-level to top executives. Data is collected annually from insurance employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of January 1, 2010.
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.