Healthcare Organizations Seek Healthcare Cost Containment

February 7, 2012    

With the costs of medical insurance increasing regularly, healthcare organizations are looking to other means in order to control costs. According to the 2011 Compensation Data Healthcare survey results, the most common of those options is coordination of benefits at almost 82.1 percent. That number is slightly up from 81.4 percent in 2009. However, the largest increase is the number of reporting employers that increased the employee co-insurance level at nearly 12.5 percent in 2011, compared to 16.4 in 2010.

A network of healthcare professionals, utilization review and disease management were the three next most prevalent methods used. More than 77 percent of organizations report using a network of healthcare professionals, 63.1 percent apply utilization review and nearly 60 percent contain costs with disease management.

The biggest decrease from 2010 to 2011 is in the use of pre-existing condition clauses. In 2010, nearly 46 percent of healthcare employers attempted to contain costs with pre-existing condition clauses compared to 41.8 percent in 2011.

“As healthcare 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 20 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 healthcare costs placed on the organization was to increase the employee portion of the premium. The results show more than 63 percent of healthcare companies shifted some of the premium cost to the employee based on a percentage of the total cost. Nearly 50 percent of employers increased the deductible levels in an effort to lower the overall costs of the plan.

About the Survey
Compensation Data 2011 Healthcare surveyed 250 industry-specific job titles and more than 350 benchmark titles ranging from entry-level to top executives. Data was collected from more than 1,100 healthcare employers reporting on nearly 5,300 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 more information about our compensation and benefit surveys, contact Michelle Willis at (800) 300-9570.

Care to Share?

Topics: