Manufacturing & Distribution Employers Seek Healthcare Cost Containment

April 23, 2012    

With the costs of medical insurance regularly increasing, manufacturers and distributors look to other means in order to control costs. According to the 2011 Compensation Data Manufacturing & Distribution survey results, the most common of those options is coordination of benefits at nearly 84 percent. Disease management showed the largest increase at 66 percent, up from 61 percent in 2010. 

All other cost containment measures saw varying decreases. Pre-admission testing and pre-existing condition clauses saw the most notable decreases. Nearly 36 percent of organizations reported requiring pre-admission testing in 2010, compared to 33.4 percent last year. Similarly, a network of healthcare professionals was offered  by 80.7 percent of employers in 2010, dropping to 79 percent in 2011.

The biggest decrease from 2010 to 2011 is pre-existing conditions clauses. In 2010, almost 42 percent of employers attempted to contain costs by including a pre-existing condition clause, compared to 38.5 percent in 2011.

“As manufacturing and distribution companies 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, more than 24 percent of employers 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 employer was to increase the employee portion of the premium. The results show nearly 52 percent of manufacturing and distribution 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 28.3 percent increased the employee co-insurance level.

About the Survey
Compensation Data Manufacturing & Distribution 2011 contains data on more than 450 titles ranging from entry-level to top executives. The results feature data from nearly 1,100 manufacturers and distributors reporting on more than 9,500 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 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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