High Deductable Health Plans Popular among Manufacturers and Distributors

The average annual cost of insurance per employee on a manufacturing and distribution employer sponsored PPO plan is $8,326. That's up from $7,227 reported in 2009, an increase of 15.2 percent in three years, according to the 2012 Compensation Data Manufacturing & Distribution survey conducted by Compdata Surveys. More than 100 industry-specific job titles and 400 benchmark titles were surveyed ranging from entry-level to top executives, with data collected from nearly 28,000 manufacturing and distribution organizations across the country.

The results found 91.3 percent of manufacturing and distribution employer-sponsored PPO plans include a deductible or co-insurance requirement for services. The average deductible on an employee only PPO plan is $737, compared to $1,583 for an employee plus family plan. The average in-network out-of-pocket maximum on an employee plus family PPO plan is $5,335.

"Although PPO plans are still the most commonly offered medical plans among manufacturing and distribution employers, HDHP plans are beginning to make headway as employers attempt to contain rapidly increasing medical costs," said Amy Kaminski, vice president for Compdata Surveys. "The high deductible requirement translates to lower overall premium costs, making them more affordable for employers to offer."

The use of consumer driven health plans (CDHPs) is on the rise as well. CDHPs typically pair an HDHP medical plan with a spending account, which can be used by the covered employee for their medical expenses. Health Savings Accounts (HSA) with an HDHP is the most common of these plans, as they are used by 33 percent of survey respondents. HSA contributions are made either by the employer or the employee and any unused balance can be carried forward.

For more information about the compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish