Kansas City, Kan.— According to the Kaiser Family Foundation, Americans filled more than 3.7 billion prescriptions in 2010. Because the rate at which individuals developing chronic health conditions continues to increase, the expected decline in drug costs comes as little comfort to insurance industry employers who are largely footing the bill, as an overwhelming majority still offer prescription coverage to employees as a part of their medical plan. These increasing costs translate to higher premiums for employers and employees, as well as increasing co-pays.
According to the newly released 2012 Compensation Data Insurance survey results, insurance organizations are providing considerably more options to their employees in regard to health and wellness programs. With prevention becoming the buzzword, insurance organizations have taken steps to increase their employees’ health and wellness through various programs.
As the economy begins to regain its footing, pay increase budgets increased slightly for insurance organizations. The newly released 2012 Compensation Data Insurance survey results indicate pay increase budgets have not changed since last year at 2.8 percent, a little below the expected 3 percent for 2012. An increase to 3 percent is expected again in 2013.
The newly released 2012 Compensation Data Insurance survey results show medical insurance premiums have increased by an average of 8 percent over the last year. This is down from 2011, where the average premium increase reported was 9.7 percent. This year, Preferred Provider Organizations (PPO) plans had one of the smallest increases at 7.8 percent.
Compdata Surveys is excited to announce the release of the 2012 Compensation Data Insurance survey results. The national results feature data from nearly 1,900 insurance employers reporting on 232,000 incumbents. Companies in other industries provided data on 400 benchmark titles for more than 32,000 locations across the country. Compensation Data Insurance surveyed 115 industry job titles and 400 benchmark job titles, as well as comprehensive benefit and pay practice information.
Original Article: BenefitsPro.com
Kansas City, Kan.— The Bureau of Labor Statistics recently reported the unemployment rate dropped to just over 8 percent as of April 2012. Though the unemployment rate seems to be on a slow yet steady decline, pay increase budgets are idling. The 2012 Compensation Data Insurance survey results reported pay increase budgets at 2.8 percent, reflecting no change since 2010. Pay increase budgets are projected to slightly increase in 2013, hitting 3 percent for the first time since 2009.
As organizations balance the effects of the recession, insurance companies see similar pay range adjustments to prior years while the time between adjustments grows longer, according to the 2011 Compensation Data Insurance results. The actual pay range adjustment of 1.5 percent in 2011 remained very similar since 2010, but came in below the projected 1.7 percent for last calendar year.
Healthcare reform will soon require all new medical plans to offer some type of prescription coverage, reducing unavoidable costs for many workers. Although medical plans vary from employer to employer, the majority of insurance organizations surveyed already include prescription coverage in their policies.
During a time of economic instability, a well-developed time-off program is essential for companies looking for a way to compensate employees without stretching already-thin budgets. As organizations push toward recovery, time-off programs are one of the cornerstones of highly competitive compensation programs attracting the best talent.