Medical insurance costs continue to rise for not-for-profit industry employers across the country. The 2011 Compensation Data Not-For-Profit survey results show organizations reported an average premium increase of 9.9 percent. More than 74 percent of respondents indicated they pay more than $9,600 annually for an employee-plus-family plan. That number is up from 67.1 percent in 2010.
“The rising cost of insurance premiums is something that continues to be an issue for employers,” 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 not-for-profit organizations as 42.3 percent pay more than $9,600 for an employee-plus-spouse plan. More than 33 percent of survey respondents report paying more than $9,600 in premium costs for an employee-plus-children plan. The majority of employee-only plans cost employers between $2,400 and $4,800 per year at a rate of 44 percent.
Employers are increasingly not offering employees a choice of deductible levels in an effort to offset the increasing outlay. Only 13.7 percent of organizations offered a choice of deductible levels in 2011, whereas 17 percent offered a choice of deductible levels in 2010. In light of this, there has been little change in the percentage of organizations that have increased deductible levels. In 2010, 40.7 percent increased deductible levels, compared to just 41.5 percent in 2011.
Not-for-profit employers are also reducing their costs by offering specific types of plans. More organizations are beginning to offer a high deductible health plan (HDHP) to employees. More than 20 percent of organizations surveyed offered HDHP plans in 2011 compared to less than 17 percent last year. The most prevalent coverage offered among organizations is a PPO plan, at a rate of 82 percent. Although HMOs are still the second most prevalent of plans offered by not-for-profit employers, these plans are beginning to lose their ground. In 2011, 41.1 percent of organizations offered HMOs compared to 42.5 percent the prior year and 45.6 percent in 2009.
About the Survey
Compensation Data 2011 Not-For-Profit contains data on more than 100 industry-specific job titles and more than 300 benchmark titles ranging from entry-level to top executives. Data is collected annually from not-for-profit 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, 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 more information about compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.