Kansas City, Kan. – Fifty-nine percent of companies in Arkansas and Oklahoma had a health insurance premium increase, according to the Compensation Data 2007 – Arkansas/Oklahoma annual survey of 134 employers. When compared to 2006, this number has decreased. The newly released results reported the average premium increase was 9.2 percent for all plan types.
Health insurance premiums have been increasing at a slower rate over the last three years. In 2006, the average premium increase was 11.1 percent and then, 12.3 percent the previous year. When comparing plans in 2007, 60.6 percent of organizations offering PPO plans saw an average increase of 9.2 percent, while HMO and POS plans had average premium increases of 11.5 and 7.6 percent respectively.
To contain rising costs, Arkansas and Oklahoma organizations utilized a variety of methods. The most highly used was a network of healthcare professionals at 69 percent in 2007. Wellness programs and coordination of benefits were prevalent, as the same percentage of organizations, 66.7 percent, used them to contain costs.
The results showed 33.3 percent of Arkansas and Oklahoma companies increased the employee portion of the premium in their efforts to reduce costs. This is 7.1 percent lower than it was in 2006. Currently, 26.4 and 18.6 percent of organizations increased deductible levels and employee co-insurance levels respectively. On average, employers contribute 11 percent of payroll toward the cost of health benefits, which is the same cost to provide all of the following benefits: dental, pension, life, disability and other non-mandated benefits.
"Health insurance continues to be a concern for both employers and employees across the United States," said Amy Kaminski, manager of marketing programs for Compdata Surveys. "And as the presidential election approaches, candidates’ health care plans will remain a primary focus of debate. However, most companies are concerned with how to contain costs now, and in response, some states are exploring legislative measures."
About the Survey
Compensation Data 2007 – Arkansas/Oklahoma contains data on 483 job titles ranging from entry-level to top executives. Information was collected on more than 353,000 employees across both states. The results provide a comprehensive summary of pay data, benefits information and pay practices with an effective date of March 1, 2007.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Data is collected annually from thousands of organizations across the country. Compdata Surveys has been providing accurate, reliable data at affordable prices to organizations from coast to coast since 1988. For further information about the compensation and benefits surveys, contact Lane Lyons Odle at (800) 300-9570 or lodle[at]compdatasurveys.com.
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