Hospitality Organizations Seek Healthcare Cost Containment

May 17, 2011    

With the price of medical insurance regularly increasing, hospitality organizations look to other means in order to control costs. According to the 2010 Compensation Data Hospitality survey results, the most common of those options is coordination of benefits at 91 percent. That number is up from 82.5 percent in 2009 and represents the largest increase from the prior year.

A network of health professionals, disease management and pre-existing condition clauses are the three next most prevalent methods used. Seventy five percent of organizations report using a network of health professionals, 53.8 percent report utilizing disease management and 53.8 percent contain costs with pre-existing condition clauses.

While still one of the top cost containment measures, the biggest decrease from 2009 to 2010 is in the use of pre-existing condition clauses. In 2009, 59.6 percent of organizations attempted to contain costs with pre-existing condition clauses compared to the 53.8 percent in 2010.

“More hospitality organizations are taking control of their healthcare plans in an effort to set costs,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefit survey data provider. “Thirty four percent of organizations reported switching carriers in 2010 in order to find a healthcare plan with lower costs.”

The most popular measures of reducing the healthcare costs placed on the organization were to increase deductible levels and increase the employee portion of the premium. The results show 52.4 percent of organizations increased deductible levels. Fifty one percent shifted some of the premium cost to the employee while 26.8 percent increased the employee co-insurance level.

About the Survey
Compensation Data 2010 Hospitality contains data on over 100 industry-specific job titles and more than 300 benchmark titles ranging from entry-level to top executives. Data is collected annually from hospitality 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, 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 Michelle Willis at (800) 300-9570.

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