Prescription Costs for Insurance Employees Increases

February 21, 2012    

Healthcare reform will soon require all new medical plans to offer some type of prescription coverage, reducing unavoidable costs for many workers. Although medical plans vary from employer to employer, the majority of insurance organizations surveyed already include prescription coverage in their policies.

According to the 2011 Compensation Data Insurance survey, nearly 98 percent of reporting insurance employers include prescription coverage in the employee medical plan. Almost 49 percent of high deductible health plans (HDHP) determine co-pay based on a flat dollar amount compared to 71.8 percent of preferred provider organizations (PPO).

“Prescription costs are expected to drop in the future, but for some employees, it will still be a challenge now,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “Many companies are looking for ways to help employees balance these costs.”

The average co-pay dollar amount for generic prescriptions has increased recently, at $11 in 2011 and $10.40 in 2010. In order to contain healthcare costs, insurance employers are increasingly utilizing disease management at 70 percent in 2011. That’s up from 67.4 percent one year earlier. The pre-existing condition clause is cost containment measure becoming less popular. In 2011, less than 37 percent of insurance organizations reported including a pre-existing condition clause compared 42.3 percent in 2010.

About the Survey
Compensation Data 2011 Insurance surveyed 115 industry-specific job titles and 350 benchmark titles ranging from entry-level to top executives. Data was collected from more than 200 insurance employers reporting on 1,750 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: ,