Smaller media companies contain healthcare costs better than big ones do

ABM’s Talent Management Committee polled 31 member companies earlier this year, asking for wide-ranging details on the healthcare benefits they offer, from 6a00d8341c639653ef017d3bd3d285970cplan types to prescriptions to spousal coverage to wellness programs. A closer look at the data reveals some key differences between the smaller and larger companies surveyed.

Premium Costs: Generally speaking, smaller companies did a better job of containing costs than larger ones. No small companies (under 100 employees) reported costs rising more than 10 percent; about a quarter saw costs rise 5 percent to 10 percent; another quarter saw costs rise 1 percent to 5 percent; and just under half reported decreases in premium costs. Of the large companies (over 250 employees), 45 percent reported premium costs rising more than 10 percent; about 35 percent saw costs rise 1 percent to 10 percent, and 20 percent saw costs actually decrease.

Funding: All small companies (under 100 employees) and 75 percent of medium to large companies (100 to 500 employees) are fully-funded / fully-insured, while 71 percent of the largest ones are self-funded / self-insured.

Plan Management: Smaller companies tend to use an insurance broker, paid on commissions, while larger ones tend to use a benefits consultant, paid a flat fee for service.

Calendar: All companies under 500 employees report soliciting new plan proposals every year or two. Almost three-quarters of the largest companies do so less frequently. Of those largest companies, 85 percent start their plan year in January. Of the other companies polled, a plurality (about 40 percent) start in January, but most are scattered across the calendar.

The full 50-page report, a members-only PDF, offers benchmarking data on plan types and costs, coverage specifics, dental benefits and more. For more information, visit the ABM Research Reports page or click to download the 2012 Healthcare Benefits Survey.

By Michael Moran Alterio

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s