With the costs of medical insurance regularly increasing, insurance organizations look to other means in order to control costs. According to the 2011 Compensation Data Insurance survey results, the most common of those options is coordination of benefits at almost 91 percent. That number is up from 88.6 percent in 2009. However, the largest increase is the number of reporting employers offering a choice of deductible levels at nearly 21 percent this year, compared to 15.2 in 2010.
A network of health professionals, utilization review and disease management are the three next most prevalent methods used. Nearly 78 percent of organizations report using a network of health professionals, 72.4 percent apply utilization review and 70 percent contain costs with disease management.
The biggest decrease from 2010 to 2011 is in the use of pre-existing condition clauses. In 2010, 42.3 percent of Insurance employers attempted to contain costs with pre-existing condition clauses compared to less than 37 percent in 2011.
“As insurance organizations face the same struggles as other industries, they are looking for ways to contain costs,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefit survey data provider. “Nearly 21 percent of organizations reported offering a choice of deductible levels to employees in order to find a healthcare plan with lower costs.”
The most popular measure of reducing the healthcare costs placed on the organization was to increase the employee portion of the premium. The results show more than 67 percent of insurance companies shifted some of the premium cost to the employee based on a percentage of the total cost. More than 45 percent of employers increased the deductible levels in an effort to lower the overall costs of the plan while 32.3 percent increased the employee co-insurance level.
About the Survey
Compensation Data 2011 Insurance contains data on more than 100 industry-specific job titles and 350 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, 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.