Kansas City, Kan. – Both organizations and employees in Michigan are facing high costs for health insurance. According to the newly released results from the Compensation Data 2007 – Michigan survey, 62 percent of companies pay $150 to 349 monthly for each individual’s health insurance premium on an employee only plan. In comparison, 90.2 percent of employers pay more than $450 on family plans. For these employers, the cost to cover a family for an entire year is over $5,400.
When examining costs on percentage plans, 43.9 percent of Michigan employers pay 70 to 89 percent of the premium on employee only plans, and 47.7 percent pay the same percentage of the premium per family. In addition, 43.3 percent of employers reported their annual deductibles were between $250 and 499 for individuals, while 36.5 percent said annual deductibles for families were more than $900.
Employee costs can also add up quickly for Michigan individuals and families. The Compensation Data - Michigan results show a great number of employees, 57 percent, pay $25 to 74 of their monthly premium. This translates to as much as $888 annually. A number of families, 26.2 percent, pay more than $250 of their monthly premium or over $3000 per year. In the majority of plans, deductibles and/or co-insurance add to out-of-pocket costs for employees, as 72.6 percent of all plan types include them.
"Individuals often believe they are carrying the majority of health care cost increases on their own," said Amy Kaminski, manager of marketing programs for Compdata Surveys, the nation’s leading compensation and benefits survey data provider. "However, in actuality, both parties are sharing the burden of increasing costs at various degrees."
The Compensation Data - Michigan results reported 23.1 percent of organizations have no waiting period for health insurance coverage, while the majority, 42.8 require one to 31 days of service. PPO plans are the most offered type of health insurance at 83.9 percent. They are followed by HMO plans at 26.1 percent and Indemnity at 21.7.
About the Survey
Compensation Data 2007 – Michigan contains data on 506 job titles ranging from entry-level to top executives. Information was collected on more than 179,000 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, 2007. 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 Lyons at (800) 300-9570 or llyons[at]compdatasurveys.com.
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