On The Move
South Carolina Gets Mixed Report Card in Employer Health Benefits 2010 Survey
Aug 30, 2010
GREENVILLE, SC - August 31, 2010 - Upstate-based Rosenfeld Einstein, one of the Carolinas' fastest-growing insurance agency/brokers, presented results of the 2010 South Carolina Employer Benefits Survey to nearly 100 organizations from across South Carolina, noting that in-state businesses are attacking rising health care costs by expanding consumer-driven healthcare programs and choices, adopting high deductible health plan options, initiating wellness programs, providing health risk assessments, and banning tobacco from work campuses.
Yet even as both cost and importance of benefits rises - employees nationwide now rank benefits as the second-most important aspect of job satisfaction, behind only job security - most employees spend fewer than 30 minutes to consider their benefits options during open enrollment periods, statistics show.
As medical costs continue to rise across the nation, premiums for Preferred Provider Organization (PPO) plans are lower on average in South Carolina at $389 for single coverage premiums versus a national average of $410.
High Deductible Health Plans (HDHPs), which include those plans offering either a Health Reimbursement Arrangement or Health Savings Account, have grown to represent nearly 46% of surveyed plans across the state, up from 30% just two years ago, and are also priced advantageously compared to national levels. HDHP premiums in South Carolina average $319 single compared to $332 single on the national scene.
Employee contributions are another story, however, as South Carolina businesses tend to require higher levels of employee contribution than do national organizations. For PPO single coverage, employees contribute an average of $71 towards premiums versus $67 nationally. For HDHPs, single coverage averages $39 versus $45 nationally.
Average deductibles run significantly higher as well, impacting South Carolinians. PPO deductibles in South Carolina average $1,159 for single coverage and $2,964 for family coverage, versus national averages of $634 and $1,488 respectively. Out-of-pocket maximums average $2,511 for single coverage in the Palmetto State as compared to $2,228 nationwide.
For HDHPs, single deductibles in South Carolina average $2,327 versus $1,838 nationally, while family deductibles average $4,667 in-state and $3,626 nationally. Out-of-pocket maximums average only $739 single in South Carolina as compared to $2,385 nationwide, partially offsetting the impact of the higher deductible levels.
The findings were unveiled today in a private presentation to representatives of businesses which participated in the 2010 South Carolina Employer Benefits Survey. Rosenfeld Einstein conducted the confidential survey in tandem with numerous human resource, chamber of commerce and economic development organizations across the state to help South Carolina business owners and company leaders benchmark their health benefit programs against peers and competitors, evaluate their competitive position, and determine if their organizations are providing competitive packages.
In assessing aggregated data from all companies and organizations combined, Slade and Einstein pointed out other notable insights, including:
• South Carolina is among national leaders in its exploration and consideration of Consumer Directed Healthcare Plans (CDHPs), which include high-deductible programs and utilization of HSAs and HRAs. Some 46% of surveyed companies currently offer such plans in the Palmetto State, up from just 30% two years ago
• Wellness programs in South Carolina are gaining ground. Personal health assessments (offered by 38.2%, up from 25% in 2008), employee assistance programs (offered by 81.4%), discounts for non-tobacco use (19.4%, up from 6%) and banning of tobacco on campuses (43.6%) are positive indicators, Einstein notes
• Nurse practitioners are now provided onsite by 13.9% of respondents
• Fully 57% of South Carolina companies offer employees more than a single plan to choose from, up from 45% in 2008; 8% offer employees 3 or more plans to select from
• Office visit copays and prescription drug copays are very comparable to national averages, and generic copays are equal on average
• 91% of employers offer 401(k), 403(b) or profit sharing plans to employees, with 65.8% offering a company match where applicable
• Short-term disability coverage is offered by 81.4% of respondents, with 59.7% providing the coverage at no cost to employees
• Long-term disability coverage is offered by 89.3% of respondents, with 70.9% providing the coverage at no cost to employees
• Long-term care insurance is offered by 19.2% of state participants, cancer insurance by 42.9% and identity theft insurance by 6.2%
Among the many notable organizations supporting the initiative were Elliott Davis CPAs, the Upstate Alliance, Anderson and Greenville chambers, Greenville Area Development Corporation, South Carolina Manufacturing Extension Partnership, and others.
"The record participation from across the state validated our belief that businesses want actionable information to help them grow and succeed," said Howard Einstein, principal of Rosenfeld Einstein. "Nearly 200 businesses from 35 cities across South Carolina participated, providing data representing more than 52,000 employees and dozens of industries, which is a highly significant sampling. These survey findings will provide them with actionable, current information previously unavailable to them to guide future benefits planning decisions."
Conducted online and containing over 200 data points, the Rosenfeld Einstein survey provides businesses with insight on how their own benefits package compare to competitors, and offers regional groups insight on new strategies for recruiting businesses, noted David Slade, an executive with Rosenfeld Einstein who presented the survey findings to attendees.
"A key value of this initiative is in helping companies understand where they are competitively, both locally and nationally, in recruiting and retaining their best associates," noted Slade. "The survey data helps organizations and regions - like regional chambers and economic development organizations -- make better informed decisions about their benefit plans based on real-time market data."
Participating organizations receive a customized analysis comparing their plan to others locally and nationally. All information is held in confidence, and participating company information is only shared with that company.
Companies contributing data represented a broad base of South Carolina industry, including manufacturing, distribution, construction, healthcare, government and municipalities, financial services, technology and professional services. Average employer size of participants was 319 employees, while the median employer was 75 employees.
"This diverse make-up is very representative of today's evolving economic base in South Carolina and provides real context to the findings," said Einstein. "Manufacturing is still hugely important, yet we continue to see growth in services and knowledge based organizations. The diversity of these participating companies really bears out this transition in our state."
"For South Carolina to continue to advance in the global economy, this type of benchmark information is essential to every forward-thinking organization, and we're pleased to make it available," Slade added.
Organizations wishing to participate in future surveys can email Rosenfeld Einstein at info@rosenfeldeinstein.com; they will then be contacted when preparations begin for the bi-annual initiative.
For additional information on Rosenfeld Einstein or the 2010 South Carolina Employer Benefits Survey, contact David Slade or Howard Einstein at (864) 271-6336 or via email at info@rosenfeldeinstein.com.
Rosenfeld Einstein
Rosenfeld Einstein is a regional, full-service insurance agent/brokerage and consulting firm. Areas of specialty range from employee benefits to personal and commercial property and casualty, financial services, professional liability, risk management, claims management, workplace safety and wellness. Visit them on the web at www.RosenfeldEinstein.com.
