Kansas City, Kan. – Although most Indiana organizations saw an increase in their health insurance premium, the average premium increase is decreasing, according to the Compensation Data 2008 - Indiana annual survey of 404 employers. The newly released results reported the average premium increase was 7 percent for all plan types.
While health insurance premiums are rising, they have been increasing at a lower rate for the last five years. In 2007, the average premium increase was 11.8 percent and then, 12.8 percent the previous year. When comparing plans in 2008, 64.8 percent of organizations offering PPO plans saw an average increase of 7.5 percent. Those offering HMO and POS plans had average premium increases of 5.5 and 6.3 percent respectively. HDHP plans had increases of 6 percent.
“Less than 40 percent of the organizations offering HDHP plans had a health insurance premium increase in 2008,” said Amy Kaminski, manager of marketing programs for Compdata Surveys. “Comparatively, over 60 percent of employers had increases with PPO and HMO plans.”
To contain rising costs, Indiana organizations utilized a variety of methods. The most highly employed was the use of a network of healthcare professionals at 76 percent in 2008, while coordination of benefits was used by 75.8 percent. Wellness programs were prevalent, as 75 percent of organizations used them to contain costs.
The results showed 42 percent of Indiana companies increased the employee portion of the premium in their efforts to reduce costs. This is higher than the percentage seen in 2006. Currently, 31.3 and 18.3 percent of organizations increased deductible levels and employee co-insurance levels, respectively. On average, employers contribute 10.5 percent of payroll toward the cost of health benefits, which is nearly the same cost to provide all of the following benefits: dental, pension, life, disability and other non-mandated benefits.
About the Survey
Compensation Data 2008 – Indiana contains data on 617 job titles ranging from entry-level to top executives. Information was collected on more than 243,000 employees across the state. The results provide a comprehensive summary of pay data, benefits information and pay practices with an effective date of March 1, 2008.
Compdata Surveys, www.compdatasurveys.com, has been providing accurate, reliable data at affordable prices since 1988. For further information about the compensation and benefits surveys, contact Lane Odle at (800) 300-9570 or lodle[at]compdatasurveys.com.
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