Medical Insurance Costs on the Rise for the Not-For-Profit Industry

For more information, contact:
Michelle Willis
(800) 300-9570

Kansas City, Kan.— September 13, 2011 — Medical insurance costs are continuing to rise for not-for-profit industry employers across the country. The 2011 Compensation Data Not-For-Profit survey results show organizations reported an average premium increase of 9.9 percent. More than 70 percent of respondents indicated they pay more than $9,600 annually for an employee plus family plan.

“The rising cost of insurance premiums is something that continues to be an issue for 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 for not-for-profit organizations as 74.5 percent pay more than $7,200 for an employee plus spouse plan. Nearly 64 percent of survey respondents report paying more than $7,200 in premium costs for an employee plus children plan. Employee only plans cost employers between $2,400 and $7,200 per year.

Employers are often forced to shift some of the cost to their employees in an effort to offset the increasing outlay. Organizations increased the employee portion of the premium at a rate of 54.4 percent, whereas 41.5 percent have increased deductible levels. More than 82 percent of organizations report utilizing coordination of benefits in an effort to avoid overlap of benefit costs.

One way to reduce costs to the employer is through the type of plan offered. More organizations are beginning to offer a high deductible health plan (HDHP) to employees. In 2011, 20.7 percent of not-for-profit organizations reported offering HDHPs compared to just 13.2 percent in 2009. The most prevalent coverage offered among organizations is a PPO plan, offered at a rate of 82 percent. HMO plans are the second most common, offered by 41.1 percent of respondents.

About the Survey
Compensation Data 2011 Not-For-Profit surveyed more than 100 industry-specific job titles and 350 benchmark titles ranging from entry-level to top executives. Data was collected from more than 400 not-for-profit employers reporting on nearly 1,300 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of March 1, 2011.

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 their compensation and benefit surveys, contact Michelle Willis at (800) 300-9570.