Kansas City, Kan. – Although most Ohio organizations saw an increase in their health insurance premium, the average premium increase is decreasing, according to the Compensation Data 2008 - Ohio annual survey of 375 employers. The newly released results reported the average premium increase was 7.5 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 10.9 percent and then, 12.1 percent the previous year. When comparing plans in 2008, 68.6 percent of organizations offering PPO plans saw an average increase of 7.8 percent. Those offering HMO and POS plans had average premium increases of 6.8 and 8.6 percent, respectively. HDHP plans had increases of 4.1 percent.
“Less than half 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 65 percent of employers had increases with PPO and HMO plans.”
To contain rising costs, Ohio organizations utilized a variety of methods. The most highly used was coordination of benefits at 72.7 percent in 2008, while wellness programs were employed by 70.6 percent. Use of a network of healthcare professionals was prevalent, as 61.7 percent of organizations used them to contain costs.
The results showed 39.9 percent of Ohio companies increased the employee portion of the premium in their efforts to reduce costs. This is less than the percentage seen in 2006. Currently, 30.4 and 18.4 percent of organizations increased deductible levels and employee co-insurance levels, respectively. On average, employers contribute 10.7 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 – Ohio contains data on 570 job titles ranging from entry-level to top executives. Information was collected on more than 266,000 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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