Mixed Results, Lots of Change for South Carolina in Employer Health Benefits 2012 Survey

STATEWIDE, SC – August 10, 2012 – Upstate-based Rosenfeld Einstein, one of the Carolinas’ leading insurance agency/brokers, has released results of the 2012 South Carolina Employer Benefits Survey to more than 130 participating organizations from across SouthCarolina, noting that in-state businesses are attacking rising healthcare costs by expanding consumer-driven healthcare programs and choices,adopting high deductible health plan options, providing health riskassessments, and banning tobacco from work campuses.

And as both cost and importance of benefits rises – 53% of employeesnationwide now rank benefits as an important aspect of job satisfaction,along with such criteria as job security and organizational financialstability – more employers and employees are becoming engaged inwellness programs in South Carolina, statistics show.

As medical costs continue to rise across the nation, premiums forPreferred Provider Organization (PPO) plans are lower on average inSouth Carolina at $406 for single coverage premiums versus a nationalaverage of $465.

High Deductible Health Plans (HDHPs), which include those plansoffering either a Health Reimbursement Arrangement or Health SavingsAccount, have grown to represent 60% of surveyed plans across the state,up from 46% just two years ago, and are also priced advantageouslycompared to national levels.  HDHP premiums in South Carolina average$385 single compared to $399 single on the national scene.

Employee contributions are another story, however, as South Carolinabusinesses tend to require higher levels of employee contribution thando most national organizations.  For PPO single coverage, employeescontribute an average of $92 towards premiums versus $84 nationally.  For HDHPs, single coverage averages $59 in South Carolina versus $60nationally – essentially flat.

Average deductibles run significantly higher as well, impacting SouthCarolinians.  PPO deductibles in South Carolina average $1,449 forsingle coverage and $3,693 for family coverage, versus national averagesof $928 and $1,521 respectively.  Out-of-pocket maximums, excludingdeductibles, average $2,830 for PPO coverage and $1,331 for HDHPcoverage in the Palmetto State.

For HDHPs, single deductibles in South Carolina average $2,255 versus$1,908 nationally, while family deductibles average $4,620 in-state and$3,666 nationally.  Out-of-pocket maximums average only $1,331 singlein South Carolina as compared to $2,935 nationwide, partially offsettingthe impact of the higher deductible levels.

The findings were unveiled in a private presentation to representatives of businesses which participated in the 2012 South Carolina Employer Benefits Survey.  Rosenfeld Einstein conducted the confidential survey in tandem withnumerous human resource, chamber of commerce and economic developmentorganizations across the state to help South Carolina business ownersand company leaders benchmark their health benefit programs againstpeers and competitors, evaluate their competitive position, anddetermine if their organizations are providing competitive packages.

In assessing aggregated data from all companies and organizationscombined, Rosenfeld Einstein’s David Slade and Howard Einstein pointedout other notable insights, including:

• South Carolina is among national leaders in its exploration and consideration of Consumer Directed HealthcarePlans (CDHPs), which include high-deductible programs and utilization ofHSAs and HRAs.  Some 60% of surveyed companies currently offer suchplans in the Palmetto State, up from just 46% two years ago
• Wellness programs in South Carolina are gaining ground, with more than 56% of employers now offering such programs. Initiativesinclude personal health risk assessments (offered by 66%, up from 38%in 2010), employee assistance programs (offered by 70% of employers, andpaid for by 96%), discounts for non-tobacco use (39%, up from 19.4%)and banning of tobacco on campuses (27%, with 13% more considering suchaction) are all positive indicators
• Fully 56% of South Carolina companies offer employees more than a single plan to choose from; 9% offer employees 3 or more plans from which to select
• Office visit copays continue to rise,averaging $27 for PPO plans, up from $23 in 2011; specialist officecopays average $43, up from $32 in 2011.  87% of companies now have aspecialist copay that is higher than a Primary Care Physician copay, upfrom 78% in 2010
• Prescription drug copays are very comparable to national averages for generic, preferred and non-preferred prescriptions
• 75% of employers offer 401(k), 403(b) or profit sharing plans to employees, down from 91% in 2010, with 73% offering a company match where applicable
• Short-term disability coverage is offered by 76% of respondents, with 66% providing the coverage at no cost to employees
• Long-term disability coverage is offered by 86% of respondents, with 73% providing the coverage at no cost to employees
• Long-term care insurance is offered by 19.2% of state participants, cancer insurance by 35%, and 29% offer critical illness coverage; these plans are nowoffered on a group basis and help to bridge the gap in deductibles andout of pocket maximums under consumer directed health plans
• Identity theft insurance is offered by 6.2%

The participation from across the state validated our belief thatbusinesses want actionable information to help them grow and succeed,said Howard Einstein, principal of Rosenfeld Einstein.  Over 130businesses from 30 cities across South Carolina participated, providingdata representing more than 30,000 employees and dozens of industries,which is a highly significant sampling.  These survey findings willprovide them with actionable, current information to guide futurebenefits planning decisions.

Conducted online and containing over 200 data points, the RosenfeldEinstein survey provides businesses with insight on how their ownbenefits package compares to competitors, and offers regional groupsinsight on new strategies for recruiting businesses, noted David Slade,an executive with Rosenfeld Einstein who presented the survey findingsto attendees.  The firm’s proprietary survey data was compared toKaiser/HRET’s 2011 national survey results – the latest available.

A key value of this initiative is in helping companies understandwhere they are competitively, both locally and nationally, in recruitingand retaining their best associates, noted Slade.  The survey datahelps organizations and regions – like

regional chambers and economic development organizations — makebetter informed decisions about their benefit plans based on real-timemarket data. 

Participating organizations receive a customized analysis comparingtheir plan to others locally and nationally.  All information is held inconfidence, and participating company information is only shared withthat company. 

Companies contributing data represented a broad base of SouthCarolina industry, including manufacturing, distribution, construction,healthcare, government and municipalities, financial services,technology and professional services. Average employer size ofparticipants was 252 employees, while the median employer was 89employees.

This diverse make-up is very representative of today’s evolvingeconomic base in South Carolina and provides real context to thefindings, said Einstein.  Manufacturing is still hugely important, yetwe continue to see growth in services and knowledge basedorganizations.  The diversity of th
ese participating companies reallybears 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 everyforward-thinking organization, and we’re pleased to make it available,Slade added.

For additional information on Rosenfeld Einstein or the 2012 South Carolina Employer Benefits Survey, contact David Slade or Howard Einstein at (864) 271-6336 or via email at [email protected]. 

Rosenfeld Einstein

Rosenfeld Einstein is a regional, independent insuranceagency/brokerage and consulting firm.  Areas of specialty includeemployee benefits, personal, commercial property and casualty, life andhealth insurance, workplace safety, wellness and financial services.  Visit them on the web at www.RosenfeldEinstein.com