Services Organizations Seek Healthcare Cost Containment

March 13, 2012    

With the costs of medical insurance regularly increasing, services organizations look to other means in order to control costs. According to the 2011 Compensation Data Services survey results, the most common of those options is coordination of benefits at almost 80 percent. That number is up slightly from 78.5 percent in 2010. However, the largest increase is the number of reporting employers offering disease management at 57.2 percent in 2011, compared to 54 percent in 2010.

A network of health professionals and utilization review and are the next most prevalent methods used. Nearly 74 percent of organizations report using a network of health professionals, and 54.7 percent apply utilization review.

The biggest decrease from 2010 to 2011 is in the inclusion of pre-existing condition clauses. In 2010, 43.3 percent of services employers attempted to contain costs with pre-existing condition clauses, compared to less than 39.1 percent in 2011.

“As services 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. “In 2011, nearly 24 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 nearly 55 percent of services companies shifted some of the premium cost to the employee based on a percentage of the total cost. Nearly 47 percent of employers increased the deductible levels in an effort to lower the overall costs of the plan while 30.1 percent increased the employee co-insurance level.

About the Survey
Compensation Data 2011 Services contains data on more than 425 titles ranging from entry-level to top executives. Data is collected annually from services 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.

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