Insurance Employers Seek Healthcare Cost Containment

September 11, 2012    

With the costs of medical insurance regularly increasing, insurance employers look to other means in order to control costs. According to the 2012 Compensation Data Insurance survey results, the most common of those options is coordination of benefits at more than 90 percent. Pre-existing condition clauses showed the largest increase at 40.5 percent, up from 36.9 percent in 2011. 

Most cost containment measures saw varying decreases. Utilization reviews saw the most notable decrease. More than 72 percent of organizations reported using utilization reviews in 2011, compared to 66 percent this year. Pharmacy benefit management programs were offered by 64.1 percent of employers in 2011, dipping to 61.9 percent in 2012.

“As insurance 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 2012, more than 14 percent of insurance 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 63 percent of insurance employers shifted some of the premium cost to the employee based on a percentage of the total cost. Nearly 43 percent of employers increased the deductible levels in an effort to lower the overall costs of the plan, while 33.6 percent increased the employee co-insurance level.

About the Survey
Compensation Data 2012 Insurance contains data on 115 industry specific job titles and 400 benchmark job titles ranging from entry-level to top executives. Data was collected from nearly 1,900 insurance providers reporting on 232,000 incumbents. Companies in other industries provided data on 400 benchmark titles for more than 32,000 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.

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