The newly released 2012 Compensation Data Healthcare survey results show medical insurance premiums have increased by an average of 8 percent over the last year. This is down from 2011, where the average premium increase reported was 9.5 percent. This year, Health Maintenance Organizations (HMO) plans had one of the largest increases at nearly 9 percent.
“The rising cost of insurance premiums is something that continues to be an issue for healthcare organizations,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “To counteract these rising costs, organizations have to look in different directions in order to continue providing quality coverage for their employees.”
Premium costs remain high for employers, as 56.8 percent of organizations pay more than $7,200 for an employee plus spouse plan. More than 62 percent of survey respondents are paying more than $7,200 in premium costs for an employee plus children plan. The premium costs for an employee only plan range between $2,400 and $7,200 for 90 percent of those surveyed.
Employers are often forced to shift some of the cost to their employees in an effort to offset the increasing outlay. Sixty-five percent of organizations increased the employee portion of the premium while 43.7 percent increased deductible levels. More than 62 percent of organizations reported utilizing coordination of benefits in an effort to avoid overlap of benefit costs.
One way to reduce costs to the employer is through the type of plan offered. More employers are offering HDHP plans. According to the 2012 results, 23.3 percent of organizations reported offering an HDHP plan compared to 19.4 percent in 2011. The most prevalent coverage offered among healthcare organizations is a PPO plan, offered by 85.6 percent of organizations. HMO plans are the third most common, offered by 18.1 percent.
About the Survey
Compensation Data 2012 Healthcare contains data on 225 industry specific job titles and 400 benchmark job titles ranging from entry-level to top executives. Data was collected from nearly 8,200 healthcare providers reporting on 5.1 million incumbents. Companies in other industries provided data on 450 benchmark titles for more than 27,000 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, 2012.
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.