The newly released 2012 Compensation Data Hospitality survey results show medical insurance premiums have increased by an average of 8.4 percent over the last year. This is a smaller increase compared to 2011 where the average premium increase reported was 9.3 percent. This year, PPO plans had one of the largest increases at 9.1 percent.
The types of plans offered by employers have seen changes this year compared to 2011. According to the 2012 results, HMO plans saw the largest decrease this year, down to 16.8 percent from 29.1 percent in 2011. The most prevalent coverage offered among hospitality organizations is a PPO plan, offered by 78.6 percent of participants. However, HDHP lost ground in 2012 with just 11.6 percent of employers offering the plan, compared to more than 15 percent last year.
“The rising cost of insurance premiums is continues to be an issue for hospitality organizations,” 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 more than 47 percent of organizations pay more than $7,200 for an employee-plus-spouse plan. Nearly 42 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 nearly all surveyed employers.
Employers are often forced to shift some of the cost to their employees in an effort to offset the increasing outlay. Fifty percent of hospitality organizations increased the employee portion of the premium while 37.8 percent increased deductible levels. Nearly 87 percent of organizations reported utilizing coordination of benefits in an effort to avoid overlap of benefit costs.
About the Survey
The 2012 Compensation Data Hospitality results provide a comprehensive summary of pay data, benefits information and pay practices with an effective date of March 1, 2012. More than 100 industry-specific job titles and 400 benchmark titles were surveyed ranging from entry-level to top executives, with data collected from more than 3,600 hospitality 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.