Not-For-Profit Employers Seek Healthcare Cost Containment

May 18, 2012    

With the costs of medical insurance regularly increasing, not-for-profit organizations look to other means in order to control costs. According to the 2011 Compensation Data Not-For-Profit survey results, the most common of those options is coordination of benefits at more than 82 percent. Disease management showed the largest increase at 62.7 percent, up from 56.6 percent in 2010. 

Most cost containment measures saw varying decreases. The use of pre-existing condition clauses saw the most notable decrease. Thirty-nine percent of organizations reported utilizing a pre-existing condition clause in 2010, compared to 30.5 percent last year. Pharmacy benefit management programs were offered by 50.8 percent of employers in 2010, dipping to 49.9 percent in 2011.

“As not-for-profit 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 benefits survey data provider. “In 2011, nearly 18 percent of not-for-profit employers reported switching carriers 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 more than 54 percent of not-for-profit employers shifted some of the premium cost to the employee based on a percentage of the total cost. Nearly 42 percent of employers increased the deductible levels in an effort to lower the overall costs of the plan while 28.2 percent increased the employee co-insurance level.

About the Survey
Compensation Data 2011 Not-For-Profit contains data on more than 450 titles ranging from entry-level to top executives. The results feature data from more than 400 not-for-profit organizations reporting on nearly 1,300 locations 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 (800) 300-9570.

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