Medical insurance costs continue to rise for hospitality industry employers across the country. The 2011 Compensation Data Hospitality survey results show organizations reported an average premium increase of 9.3 percent. Nearly 46 percent of respondents 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 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 hospitality companies as nearly 48 percent pay more than $7,200 for an employee-plus-spouse plan. Forty-two percent of survey respondents report paying more than $7,200 in premium costs for an employee-plus-children plan. Employee-only plans cost between $2,400 and $4,800 per year for 63.2 percent of employers.
Employers are shifting some of the cost to their employees in an effort to offset the increasing outlay. More than 54 percent of hospitality organizations increased the employee portion of the premium, whereas 42 percent have increased deductible levels. More than 90 percent of organizations report utilizing coordination of benefits to avoid overlap of benefit costs.
Employers are reducing their costs by offering specific types of plans. More companies are beginning to offer a high deductible health plan (HDHP) to employees. In 2011, more than 15 percent of companies reported offering HDHPs compared to just 9.7 percent in 2010. The most prevalent coverage offered among organizations is a PPO plan, offered at a rate of 74.6 percent. However, that number has dropped from 82.3 percent in 2011. HMO plans are also losing ground as 29.1 percent of respondents offered them in 2011, compared to more than 32 percent last year.
About the Survey
Compensation Data 2011 Hospitality 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 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, 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