Medical insurance costs are continuing to rise for utilities across the country. The 2011 Compensation Data Utilities survey results show utility organizations report an average premium increase of 12.5 percent. Seventy four percent indicated they pay more than $9,600 annually for an employee plus family plan.
“The rising cost of insurance premiums is something that continues to be an issue for all organizations,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “To counteract these rising costs, organizations have to look in different directions in order to continue providing quality coverage for their employees.”
Premium costs remain high for employers, as 77.7 percent pay more than $7,200 for an employee plus spouse plan. Seventy two percent of survey respondents are paying more than $7,200 in premium costs for an employee plus children plan. The premium costs for an employee only plan range between $2,400 and $7,200 for 85.5 percent of those surveyed.
Employers are often forced to shift some of the cost to their employees in an effort to offset the increasing outlay. Fifty one percent of organizations have increased the employee portion of the premium while 34.1 percent increased deductible levels. Ninety three percent of organizations report utilizing coordination of benefits in an effort to avoid overlap of benefit costs.
PPO plans are the most common plan offered among utility employers at 90.1 percent. HMO plans are offered by 28.2 percent while HDHP plans are offered by 22.5 percent of respondents.
About the Survey
Compensation Data 2011 Utilities surveyed 115 industry specific job titles and 350 benchmark job titles ranging from entry-level to top executives. Data was collected from 130 utility employers reporting on over 3,700 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of January 1, 2011.
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.