2010, Employees Will Pay More, So Will Their Employers, According To New Health Care Benefits Survey

April 2, 2010 - PRLog -- Redmond, Washington – Even as health care cost increases slow a bit from the double-digit yearly growth rates of the first half of the decade, they still impact employers already affected by the poor economy in 2008 and 2009.   The most recent data – from January 2010 - reveal that most employers have continued to absorb some of the increases but also to shift some to employees by increasing what employees pay monthly for coverage as well as reducing benefit levels.

These approaches are documented in the new 2010 Health Care Benefits Benchmarking Survey released by Abbott, Langer Association Surveys on April 2, 2010. Analyzing data effective January 2010 provided by 183 respondents across the United States employing over 120,000 workers (279 medical plans and 202 dental plans), the report provides a timely baseline for employers wishing to benchmark their health plan costs and practices with other employers. This is the third annual survey and the information helps identify trends in health care costs and coverage to better inform decisions about medical plans, changes, and strategies for effective benefits management.

Some highlights of the survey include:

• Provision of Medical Benefits
- Preferred Provider Organization (PPO) plans remained the most prevalent type of medical benefits delivery -- 48% of respondents offered PPOs, and 64% of their employees chose them.
- Health Maintenance Organization (HMO) plans were less common, offered by 24% of respondents, covering 20% of employees.
- While 10% offered Point-of-Service (POS) plans, only 2% of employees chose that option in 2010, a decline from the level of participation in 2008 and 2009.
- In 2008, most employers offered only one medical plan; in 2009 and 2010, a majority offer at least two choices.

• Cost of Medical Benefits through PPOs
- Average employee cost for PPOs for employee-only coverage in 2010 is $106.49 per month, an increase of 39% over 2009.
- Average employer cost for employee-only coverage in 2010 is $382.89 per month, an increase of about 8%, but still representing over 78% of the total premium cost.

• Dental Coverage
- 92% offer dental plans, with 63% providing an option of Dental Preferred Provider Organizations (DPPOs).
- Average employee cost for employee-only coverage in 2010 is $15.37 per month, an increase of 19% from 2009; average employer cost for employee-only coverage in 2010 is $27.34 per month, an increase of 30%, representing 64% of the total premium.

• Cost Containment Strategies
- 69% offer wellness programs and 64% provide disease management programs in 2010; both increased from 2009 levels.
- 11% reported introducing a High Deductible Health Plan with a Health Savings Accounts, and it is becoming more common to have this offered as the primary plan.
- Last year, 51% increased employee contributions to premiums, 43% increased deductibles, and 36% increased employee prescription co-payments or co-insurance.
- 26%, primarily nonprofit organizations, did not increase required employee contributions.

The new 2010 Health Care Benefits Benchmarking Survey report, available for $289 at www.abbott-langer.com, provides details on the findings listed above, as well as additional information (length of employment requirements for coverage; availability of vision care coverage; breakouts by size and type of employer and geographic location, etc.)

For those interested specifically in benefits for nonprofits, the 2010 Benefits in Nonprofit Organizations, 10th Edition will be available from Abbott, Langer in July 2010.

About Abbott, Langer Association Surveys:  

Since 1967, Abbott, Langer has provided a wide variety of salary and benefit survey reports, with a particular focus on the nonprofit and manufacturing sectors. Now operating under license with ERI Economic Research Institute (http://www.erieri.com), Abbott, Langer uses ERI’s patented online survey capabilities to produce reports used by thousands of customers for salary and benefit planning and other HR management decision-making.  Users are diverse organizations that vary in size from extremely small to over $4 billion in annual sales volume, and include firms that operate locally, regionally, nationally, and even internationally.

Please call 877-210-6563 or visit: http://www.abbott-langer.com for more information and a complete list of available surveys.

# # #

ERI Economic Research Institute was founded in 1987 to provide compensation, benefits, and Human Resource research for private and public organizations in the form of published reports and software database products.