Medical Insurance Costs Remain High for Not-For-Profit Employers

September 20, 2012    

The 2012 Compensation Data Not-For-Profit survey results show medical insurance premiums have increased by an average of 8.6 percent over the last year. This is down from 2011, where the average premium increase reported was 9.9 percent. This year, HMO plans had one of the largest increases at 8.8 percent.

The types of plans offered by employers have seen changes this year compared to 2011. According to the 2012 results, HMO plans saw the largest decrease this year, down to 29.1 percent from 41.1 percent in 2011. The most prevalent coverage offered among nonprofit organizations is a PPO plan, offered by 81.2 percent of participants. However, HDHP plans are becoming increasingly popular with 24.1 percent of employers offering the plan. That’s up from 20.7 percent last year.

“Although PPO plans are still the most commonly offered medical plans among not-for-profit organizations, HDHP plans are beginning to make headway as employers attempt to contain rapidly increasing medical costs,” said Amy Kaminski, director of marketing for Compdata Surveys. “The high deductible requirement translates to lower overall premium costs, making them more affordable for employers to offer.”

Premium costs remain high as nearly 80 percent of participating nonprofits pay more than $7,200 for an employee-plus-spouse plan. Similarly, 72.2 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. Sixty-three percent of nonprofit organizations increased the employee portion of the premium while 39.4 percent increased deductible levels. More than 85 percent of organizations reported utilizing coordination of benefits in an effort to avoid overlap of benefit costs.

About the Survey
Compensation Data 2012 Not-For-Profit provides a comprehensive summary of pay data, benefits information and pay practices with an effective date of March 1, 2012. More than 100 industry-specific job titles and 400 benchmark titles were surveyed, ranging from entry-level to top executives, with data collected from more than 3,100 not-for-profit organizations across the country.

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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