The newly released 2012 Compensation Data Utilities survey results show medical insurance premiums have increased by an average of 11.6 percent over the last year. This is down from 2011, where the average premium increase reported was 12.5 percent. This year, Preferred Provider Organizations (PPO) plans had one of the largest increases at 12.4 percent.
“The rising cost of insurance premiums is something that continues to be an issue for utilities employers,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation's leading pay and benefits survey data provider. “To counteract these rising costs, organizations have to look in different directions in order to continue providing quality coverage for their employees.”
Premium costs remain high, as 77.3 percent of organizations pay more than $7,200 for an employee plus spouse plan. Just over 74 percent of survey respondents are paying more than $7,200 in premium costs for an employee plus children plan. The premium costs for an employee only plan range between $2,400 and $7,200 for 86.7 percent of those surveyed.
Employers are often forced to shift some of the cost to their employees in an effort to offset the increasing outlay. Nearly 53 percent of utilities increased the employee portion of the premium while 35.3 percent increased deductible levels. More than 91 percent of organizations reported utilizing coordination of benefits in an effort to avoid overlap of benefit costs.
The types of plans offered by employers has seen significant change this year. According to the 2012 results, 16.8 percent of organizations reported offering an HMO plan compared to 28.2 percent in 2011. The most prevalent coverage offered among utilities organizations is a PPO plan, offered by 87 percent of organizations. HDHP plans are the third most common this year, offered by 26 percent.
About the Survey
Compensation Data 2012 Utilities contains data on 115 industry specific job titles and 400 benchmark job titles ranging from entry-level to top executives. Data was collected from more than 1,200 utilities reporting on more than 195,000 employees across the country. More than 34,000 companies in other industries provided data on 400 benchmark titles. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 1, 2012.
Compdata Surveys is the nation's leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about the compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.