Posts Tagged ‘NC Healthcare Benefits & Cost Survey’

Necessity is the Mother of Invention

Tuesday, December 3rd, 2013

The post below is a guest blog from Todd Yates who serves as Managing Partner for CAI’s employee benefits partner Hill, Chesson & Woody.

Todd Yates, Managing Partner at HCW

Todd Yates, Managing Partner at HCW

The old English proverb, “Necessity is the Mother of Invention,” means that difficult or impossible scenarios prompt inventions that are aimed at reducing the difficulty.

We have seen inventions from necessities throughout history, but I was recently reading an article in Business Week that reminded me how true this statement can be. The article that highlighted inventions derived during the Great Depression. There were certainly some extenuating needs during this period. Yet creative, hard-working people elected not to succumb to the turmoil of the day, but instead they rose to the challenge and worked to make life better. Just take a look at how the electric razor was developed, as well as Xerox copies.

At Hill, Chesson & Woody, (HCW) we focus on innovation. We work to embed it into our daily work processes.  We actually celebrate it with a monthly award of our “Thinking Cap” which goes to our team member that identifies and implements the most innovative idea that month.  We work to apply this type of mindset to all of our business relationships.

One of the best “innovations of necessity” came from a relationship that HC2013-14 N.C. Healthcare Benefits & Cost SurveyW enjoys with CAI (Capital Associated Industries). Nine years ago we recognized that there was no widely accepted benchmark for health plans in the Triad, Triangle and Eastern NC.  Most employers were simply guessing at the marketplace normative levels or they were taking national surveys and trying to extrapolate to their local NC market. Neither method yielded very reliable results.  So together we built and deployed a survey that measures the major cost drivers associated with a medical plan, as well as the cost sharing between employees and employers to cover the premium associated with the plan. Each year the North Carolina Healthcare Benefits & Cost Survey has grown in participation. This year we are anticipating over 800 local employers to contribute their plan information to the survey. This is a great example of innovation spawning from necessity as there was certainly a gap in the marketplace resources.

This valuable survey opened November 13th and remains open for one month. If you would like to receive the aggregate report results free of charge, I would encourage you to take the survey today.

N.C. Employers Receive Local Data with the 2012/2013 Healthcare Benefits and Cost Survey

Thursday, April 4th, 2013

North Carolina businesses that want to know how their benefits plan design and premium costs match up to other area businesses can quell their curiosity with the N.C. Healthcare Benefits & Cost Survey.  The survey, which is co-developed by CAI and HCW, shares local benchmark data from N.C. employers. Unlike most benchmark surveys that focus on national data, this annual survey offers N.C. employers specific information for managing employee benefits from their local peers.

Data Pool

Nearly 700 organizations from across the state provided data for the survey. More than half of the companies that participated are located in the Research Triangle Region and are small to mid-size employers with less than 1,000 employees nationwide. To capture a good picture of what benefits look like at N.C. companies, the survey includes data from 15 different industries. The top 5 industries represented include:industry table

1)      Professional/Scientific/Technical

2)      Durable Manufacturing

3)      Healthcare and Social Assistance

4)      Finance/Insurance/Real Estate/Rental/Leasing

5)      Non-Durable Manufacturing

 

Key Findings

Survey participants gave plan data for their traditional plan with the highest enrollment or consumer driven health plan with the highest enrollment, or both if applicable. Approximately 72 percent of employers gave data for a traditional plan, 11 percent gave data for a consumer driven plan and 17 percent provided data for both types of plans. Data revealed that most employers have a fully insured plan, while 26 percent have self-funded plans.

Review the key insights for traditional and consumer driven plans below:

Traditional Plans

Traditonal Data

 

  •  21 percent of employers with traditional plans offer a non-rollover Health Reimbursement Account (HRA)
  • 80 percent of employers with traditional plans have a PPO plan ,16 percent have a POS plan and 2 percent have an HMO plan
  • Average health plan premium for single coverage is $464.39 per month
  • Average health plan premium for family coverage is $1,335.03 per month
  • Employer contributes to 83 percent of single-coverage premium costs
  • Employer contributes to 55 percent of family-coverage premium costs

Consumer Driven Health Plans (CDHP)

CDHP plans

 

  • 78 percent of employers with a CDHP offer a Health Reimbursement Account (HRA)
  • 22 percent of employers with a CDHP have a rollover HRA
  • Average health plan premium for single coverage is $401.03 per month
  • Average health plan premium for family coverage is $1,145 per month
  • Employer contributes to 82 percent of single-coverage premium costs
  • Employer contributes to 57 percent of family-coverage premium costs

Please find more information on N.C. healthcare benefits and costs from the local survey here.

The 2011/2012 NC Healthcare Benefits & Cost Survey Offers Employers Local Data

Tuesday, April 3rd, 2012

Employers in North Carolina are curious to know how their benefit plan design and premium costs compare to other local companies. The NC Healthcare Benefits & Cost Survey shares local benchmark data from North Carolina companies, which differs from most benchmark surveys that focus on national data.

CAI and HCW co-developed the 2011/2012 NC Healthcare & Benefits Cost Survey. The state-wide, annual health plan benchmark survey offers North Carolina employers information that is most critical in managing their employee benefits plan.

More than 700 N.C. companies participated in the survey with a majority of participants located in the Research Triangle region of the state. Small to medium-sized employers with less than 1,000 employees nationwide accounted for the majority of survey participants.

The survey also captures organizations from several different industries to give employers multiple views for benefit and policy trends. The top five industry groups include Durable Manufacturing; Professional, Scientific and Technical; Healthcare and Social Assistance; Finance, Insurance, Real Estate, Rental and Leasing; and Non-Durable Manufacturing.

Of the survey participants, 539 employers reported offering a Traditional Plan only, 76 employers offered a Consumer-Driven Health Plan (CDHP) only, and 100 employers reported offering both. Below are key insights from the two different plans.

Key Findings: Traditional Plans

  • 22 percent of employers with traditional plans offer a non-rollover Health Reimbursement Account (HRA)
  • 76 percent of employers with a traditional plan have a PPO plan, 18 percent have a POS plan and 4 percent have an HMO plan
  • Average Health Plan premium cost for single coverage is $5,436.36 per year
  • Average Health plan premium cost for family coverage is $15,595.08 per year
  • Employer contributes to 83 percent of single-coverage premium costs
  • Employer contributes to 54 percent of family-coverage premium costs

Key Findings: Consumer-Driven Health Plans (CDHP)

  • 77 percent of employers with  a CDHP have a Health Savings Account (HAS)
  • 23 percent of employers with a CDHP have a rollover Health Reimbursement Account (HRA)
  • Average Health Plan premium cost for single coverage is $4,701.72 per month
  • Average Health plan premium cost for family coverage is $13,312.92 per month
  • Employer contributes to 85 percent of single-coverage premium costs
  • Employer contributes to 56 percent of family-coverage premium costs

Please find more information on NC healthcare benefits and costs from the local survey here.