The newly released 2012 Compensation Data Banking & Finance survey results show medical insurance premiums have increased by an average of 8.4 percent over the last year. This is down from 2011, where the average premium increase reported was 9.6 percent. This year, PPO plans had one of the largest increases at 9.9 percent.
The types of plans offered by employers have seen changes this year compared to 2011. According to the 2012 results, the most prevalent coverage offered among banking and finance organizations is a PPO plan, offered by 85.6 percent of organizations. HDHP plans are the second most common this year, offered by 31.4 percent. That’s up from 28.7 percent since 2011.
“Although PPO plans are still the most commonly offered medical plans among banking and finance employers, HDHP plans are beginning to make headway as employers attempt to contain rapidly increasing medical costs,” said Amy Kaminski, director of marketing for Compdata Surveys. “The high deductible requirement translates to lower overall premium costs, making them more affordable for employers to offer.”
Premium costs remain high as 65.5 percent of organizations pay more than $7,200 for an employee-plus-spouse plan. Forty-nine 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 all surveyed employers.
Employers are often forced to shift some of the cost to their employees in an effort to offset the increasing outlay. More than 52 percent of banking and finance employers increased the employee portion of the premium while 47 percent increased deductible levels. Almost 88 percent of organizations reported utilizing coordination of benefits in an effort to avoid overlap of benefit costs.
About the Survey
The 2012 Compensation Data Banking & Finance results provide a comprehensive look at pay data, benefits information and pay practices with an effective date of February 1, 2012. The survey covered more than 100 industry-specific job titles and 400 benchmark titles, ranging from entry-level to top executives, with data collected from nearly 12,000 banking and finance organizations across the country.
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.