Cost of Providing Medical Insurance Rising for Health-Care Organizations

June 21, 2010    

Original Article: WorldatWork

Healthcare organizations had an average premium increase of 9.4%, with 65% of participants in the “2010 Compensation Data Healthcare” survey reportedly paying more than $9,600 annually for an employee-plus-family plan.

Employee-plus-spouse plans cost employers more than $7,200 annually, and employee-only coverage is costing $2,400 annually. Employees are paying $900 per year for the same coverage.

“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 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, healthcare organizations employed a variety of methods:

- Increasing the employee portion of the premium (64.1%)
- Increasing deductible levels (45.5%)
- Increasing employee co-insurance (30.2%)
- Offering a choice of deductible levels (21.7%)

Cost containment measures also are a popular option, with 83.8% of organizations surveyed using coordination of benefits to bring costs in line. More than half of healthcare organizations employ utilization review, disease management and pharmacy benefit management to contain costs.

Original Article: WorldatWork

Care to Share?
Top