The newly released 2010 Compensation Data Banking & Finance survey results show banking and finance companies had an average insurance premium increase of 9.6%.
Despite legislation recently passed to bring costs in line, providing medical insurance continues to grow increasingly expensive for banking and finance employers across the country. The newly released 2010 Compensation Data Banking and Finance survey results show banking and finance companies had an average premium increase of 9.6 percent. More than 70 percent of survey respondents report paying more than $7,200 annually for an employee plus family plan.
Employee plus spouse plans cost employers more than $4,800 per year. Banking and finance organizations pay more than $2,400 each year for employee only coverage, with employees paying more than $300 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 on average over 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, banking and finance companies employed a variety of methods. Increasing the employee portion of the premium was most prevalent at 52.7 percent, with an increase in deductible levels following at 42.5 percent. The results showed that 30.8 percent of organizations offered a choice of deductible levels. Switching carriers was utilized by 19.9 percent of survey respondents.
Cost containment measures are also a popular option as 83.3 percent of organizations surveyed use coordination of benefits to bring costs in line. More than 60 percent of banking and finance companies employ disease management and utilization reviews to contain costs. Pharmacy benefit management is utilized by 52 percent of survey respondents.
About the Compensation Data Banking & Finance Survey
Compensation Data 2010 Banking & Finance 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 banking and finance employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 1, 2010.