The newly released 2012 Compensation Data Manufacturing & Distribution survey results show medical insurance premiums have increased by an average of 10.2 percent over the last year. This is down from 2011, where the average premium increase reported was 11 percent. This year, POS plans had one of the largest increases at 11.4 percent.
“The rising cost of insurance premiums is something that continues to be an issue for manufacturers and distributors,” 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, as 72.4 percent of organizations pay more than $7,200 for an employee plus spouse plan. Almost 75 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 nearly all surveyed employers.
Employers are often forced to shift some of the cost to their employees in an effort to offset the increasing outlay. More than 60 percent of manufacturing and distribution employers increased the employee portion of the premium while 44.8 percent increased deductible levels. Almost 83 percent of organizations reported utilizing coordination of benefits in an effort to avoid overlap of benefit costs.
The types of plans offered by employers has seen little change this year compared to 2011. According to the 2012 results, 21.9 percent of organizations reported offering an HMO plan compared to 20.8 percent in 2011. The most prevalent coverage offered among manufacturing and distribution organizations is a PPO plan, offered by 85.6 percent of organizations. HDHP plans are the second most common this year, offered by 31.4 percent.
About the Survey
Compensation Data 2012 Manufacturing & Distribution contains data on 100 industry specific job titles and 400 benchmark job titles ranging from entry-level to top executives. Data was collected from nearly 28,000 manufacturers and distributors with a combined 23 million employees, making it the largest database in the country for its industry. More than 26,000 companies in other industries provided data on benchmark titles. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 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.