The Society for Human Resource Management has released their Health Care Benchmarking Report and there are some pretty compelling insights.
- The average cost of employee healthcare makes up 7.6% of a company’s annual operating budget.
- The average cost per covered employee has increased by nearly $500 in the span of one year
- Employers spent an average of $8,669 per covered employee in 2015, compared to $8,171 per employee in the previous fiscal year.“
- Almost all employers (98%) now offer healthcare coverage for full-time employees.
- Fewer organizations offer spousal coverage and more organizations have a spousal surcharge than in previous years, to help curb costs. As such, 92% of employers offer coverage for the spouses of employees, down from 96% in 2011.
TFG Partners’ Insights: While there is little that can be done to avoid the rise in cost, plan sponsors need to concentrate on the way the plan is administered. Ensuring that the plan administrator is only paying for the right People, Provisions, and Pricing can help an organization save up to 15% in costs! Claims audits followed buy targeted analysis and action plans (our specialty) can drive plans to be administered as they were designed. We are seeing the spousal coverage rule coming into play more often. Our friends at Consova verify dependents and work spouse rules better than anyone!