Kansas City, Kan. – Fifty-eight percent of companies in Alabama, Louisiana and Mississippi had a health insurance premium increase, according to the Compensation Data 2007 – Mid-South annual survey of 198 employers. When compared to 2006, this number has decreased. The newly released results reported the average premium increase was 9.8 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 11.2 percent and then, 12.5 percent the previous year. When comparing plans in 2007, 57.7 percent of organizations offering PPO plans saw an average increase of 8.8 percent, while HMO and POS plans had average premium increases of 8.9 and 14.4 percent respectively.
To contain rising costs, Alabama, Louisiana and Mississippi organizations utilized a variety of methods. Coordination of benefits was the most highly used method at 65.7 percent in 2007, while a network of health care professionals was employed by 64.2 percent. Wellness programs were prevalent, as 62.2 percent of organizations used it to contain costs.
The results showed 27.4 percent of Alabama, Louisiana and Mississippi companies increased the employee portion of the premium in their efforts to reduce costs. This is 5.9 percent lower than it was in 2006. Currently, 31.3 and 15.4 percent of organizations increased deductible levels and employee co-insurance levels respectively. On average, employers contribute 9.3 percent of payroll toward the cost of health benefits, which is close to the 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 – Mid-South contains data on 524 job titles ranging from entry-level to top executives. Information was collected on more than 289,000 employees across the region. 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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