Eighty-four percent of responding companies reported taking at least one action to reduce healthcare costs in the prior year, and two-thirds plan further cost control in the coming year. The most popular cost control steps include:
- Raising employees’ portion of healthcare premiums
- Raising employees’ copayments and deductibles
- Offering health savings accounts (HSAs) and/or health reimbursement accounts (HRAs)
- Implementing wellness programs
The survey, conducted by BLR’s Daily Advisors in May, 2011, received 338 responses. Respondents were primarily HR/compensation/benefits managers, from a mix of industries with over half from manufacturing and construction. Respondents were geographically spread across the US, with about three-quarters of respondents employing 499 or fewer.
Here are the detailed results:
For the detailed survey report with demographic breakdowns for each question, go here.
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2010 Cost per Employee of Legally Required Benefits (Social Security, Medicare, Unemployment, Workers’ Compensation):
|
|
Number |
Percent |
|
Less than $3,000 |
35 |
12% |
|
$3,000 to $4,000 |
44 |
15% |
|
$4,001 to $5,000 |
39 |
14% |
|
$5,001 to $6,000 |
33 |
12% |
|
$6,001 to $7,000 |
18 |
6% |
|
$7,001 to $8,000 |
23 |
8% |
|
$8,001 to $10,000 |
27 |
9% |
|
More than $10,000 |
67 |
23% |
Organization offers Health Insurance to employees:
|
|
Number |
Percent |
|
Yes |
321 |
99% |
|
No |
3 |
1% |
2010 Health Insurance Cost per Employee:
|
|
Number |
Percent |
|
Less than $3,000 |
23 |
8% |
|
$3,000 to $4,000 |
38 |
14% |
|
$4,001 to $5,000 |
38 |
14% |
|
$5,001 to $6,000 |
30 |
11% |
|
$6,001 to $7,000 |
33 |
12% |
|
$7,001 to $8,000 |
30 |
11% |
|
$8,001 to $10,000 |
34 |
12% |
|
Over $10,000 |
50 |
18% |
Corporate actions taken in the last 12 months to reduce healthcare costs:
|
|
Exempt Employees |
|
Nonexempt Employees |
|
||
|
|
Number |
Percent |
Number |
Percent |
||
|
Raised employees’ copayment |
100 |
42% |
113 |
47% |
||
|
Raised employees’ deductible |
111 |
46% |
121 |
51% |
||
|
Raised employees’ portion of premium |
128 |
54% |
134 |
56% |
||
|
Introduced managed care program |
12 |
5% |
16 |
7% |
||
|
Conducted independent audits |
36 |
15% |
38 |
16% |
||
|
Reduced contributions to dependent audits |
24 |
10% |
26 |
11% |
||
|
Offered HAS/HRA high deductible plans |
65 |
27% |
75 |
31% |
||
|
Structured employee premiums on ability to pay or % salary |
7 |
3% |
9 |
4% |
||
|
Implemented wellness programs |
70 |
29% |
73 |
31% |
||
|
Discontinued retiree coverage |
6 |
3% |
6 |
3% |
||
|
Discontinued coverage to part-timers |
13 |
5% |
13 |
5% |
||
|
Offered opt-out incentives |
12 |
5% |
13 |
5% |
||
What are your competitors offering workers these days? Check your state’s edition of BLR’s exclusive Employee Compensation in [Your State] program to find out. Try it at no cost or risk.
Corporate actions planned for the NEXT 12 months to reduce health care costs:
|
|
Exempt Employees |
|
Nonexempt Employees |
|
||
|
|
Number |
Percent |
Number |
Percent |
||
|
Raise employees’ copayment |
60 |
25% |
113 |
47% |
||
|
Raise employees’ deductible |
55 |
23% |
121 |
51% |
||
|
Raise employees’ portion of premium |
117 |
49% |
134 |
56% |
||
|
Introduce managed care program |
8 |
3% |
16 |
7% |
||
|
Conduct dependent audits |
30 |
13% |
38 |
16% |
||
|
Reduce contributions to dependent premiums |
18 |
8% |
26 |
11% |
||
|
Offer HSA/HRA High deductible plans |
43 |
18% |
75 |
31% |
||
|
Structure emp. premiums on ability to pay or % salary |
5 |
2% |
9 |
4% |
||
|
Implement wellness programs |
55 |
23% |
73 |
31% |
||
|
Discontinued retiree coverage |
2 |
1% |
6 |
3% |
||
|
Discontinue coverage to part-timers |
9 |
4% |
13 |
5% |
||
|
Offer opt-out incentives |
13 |
5% |
13 |
5% |
||
2010 Costs per Employee of supplemental pay, such as overtime, premium, and shift differentials and nonproduction bonuses:
|
|
Number |
Percent |
|
We do not provide supplemental pay |
62 |
25% |
|
Less than $1,000 |
53 |
21% |
|
$1,000 to $2,000 |
49 |
20% |
|
$2,001 to $3,000 |
27 |
11% |
|
$3,001 to $4,000 |
17 |
7% |
|
$4,001 to $5,000 |
11 |
4% |
|
$5,001 to $6,000 |
7 |
3% |
|
$6,001 to $8,000 |
5 |
2% |
|
$8,001 to $10,000 |
5 |
2% |
|
Over $10,000 |
14 |
6% |
2010 Costs per Employee of paid leave time, defined as wage/salary costs of vacations, holidays, sick leave and personal days:
|
|
Number |
Percent |
|
We do not track this expense |
108 |
40% |
|
We do not provide paid time off |
3 |
1% |
|
Less than $1,000 |
6 |
2% |
|
$1,000 to $2,000 |
25 |
9% |
|
$2,001 to $3,000 |
21 |
8% |
|
$3,001 to $4,000 |
23 |
9% |
|
$4,001 to $5,000 |
19 |
7% |
|
$5,001 to $6,000 |
13 |
5% |
|
$6,001 to $8,000 |
11 |
4% |
|
$8,001 to $10,000 |
13 |
5% |
|
Over $10,000 |
25 |
9% |
Thanks to all who participated in the survey.
For a copy of the full survey, which includes complete demographic breakdowns of each question and responses by size, geographic region, and type, go here.
At the same time our insurance costs are killing us, workers are complaining about stagnant wages. I don’t think they understand that healthcare costs are largely to blame.
It’s too tempting to say this is drama, or staegd, or injury-assisted …. but this comeback is really one for the books.I’m glad I watched it. I can go to bed w/o watching Fed today. What the hell.
Even with some of the changes discussed above, keeping up with healthcare costs often seems like a losing battle. And some of the changes have real effects on morale, which could offset the initial savings.
This is wonderful and also speclacutar info. I relished reading your robust points on this particular subject matter. Thanks for composing such perfect content. This is actually fantastic.
– i have no idea who you’re referring to uenlss you mean sharapova getting a warning here 3 years agoglad i wasn’t the only one who noticed…. i saw it several times…. it’s blatant