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Medical Insurance Costs on the Rise for the Banking and Finance Industry
Kansas City, Kan.— September 6, 2011 — Medical insurance costs are continuing to rise for banking and finance industry employers across the country. The 2011 Compensation Data Banking & Finance survey results show organizations reported an average premium increase of 9.6 percent. More than 48 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 banking and finance companies as 54.1 percent pay more than $7,200 for an employee plus spouse plan. Nearly 46 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 56.7 percent, whereas 44 percent have increased deductible levels. Nearly 85 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 companies are beginning to offer a high deductible health plan (HDHP) to employees. In 2011, 28.7 percent of companies reported offering HDHPs compared to just 22.7 percent in 2010. 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 29.9 percent of respondents.
About the Survey
Compensation Data 2011 Banking & Finance surveyed more than 100 industry-specific job titles and 350 benchmark titles ranging from entry-level to top executives. Data was collected from 214 banking and finance employers reporting on nearly 7,300 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 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.