Despite Rising Costs, Employer Health Care Benefits Are Increasing
Health Care Benefits: Despite rapidly rising health care costs, many employers provide generous health care benefits, according to a recent survey.
SHRM Releases Its 2002 Survey of Employer Benefits
(Alexandria, Va., April 11, 2002) - Despite rapidly rising health care costs, many employers provide generous health care benefits, according to the Society for Human Resource Management's newly-released SHRM 2002 Benefits Survey. The survey of 551 HR professionals included 187 benefits offered by employers and tracked trends in recent years.
A total of 99 percent of respondents' organizations offer some type of health insurance coverage whether it be through a Preferred Provider Organization (PPO), Health Maintenance Organization (HMO, Exclusive Provider Organization (EPO), Indemnity or Defined Contribution plan.
"Employers have largely absorbed many of the health care cost increases in recent years and will do their best to bear much of the double-digit increases expected in the future," said SHRM President and CEO, Susan R. Meisinger, SPHR. "They do this because they know that health care coverage is one benefit employees can't and won't overlook." However, Meisinger also points out that, "Employers won't be able to shoulder the entire burden and many have already made adjustments in employee co-pays or will in the near future."
Among Health Care Benefits That Have Increased:
- Prescription Program Coverage (95 percent)
- Vision Insurance (73 percent)
- Wellness Program, Resources and Information (58 percent)
- Well Baby Program (5 percent)
- Long Term Care Insurance (48 percent)
- Supplemental Health Accident Insurance (47 percent)
- Intensive Care Insurance (37 percent)
- Critical Illness Insurance (32 percent)
- Gym Subsidy (28 percent)
- On-Site Fitness Center (26 percent)
- Acupressure or Acupuncture Medical Coverage (21 percent)
- Cancer Insurance (21 percent)
Many also offer coverage for contraceptives (70 percent) and infertility treatment (40 percent). Some offer grief recovery programs or support groups (12 percent), but larger organizations are more likely to have such a program. Those that offer long-term care insurance increased from 33 percent to 48 percent between 1998 and 2002.
Among Health Care Benefits That Have Decreased:
- Mental Health Insurance (84 to 76 percent in past 5 years).
- On-Site Vaccinations (66 to 61 percent in the past two years)
- Retiree Health Care Benefits (39 to 31 percent in the past three years)
The 2002 survey also shows a decline in benefits related to education and career development. The number of organizations offering educational assistance fell from 88 percent in 1998 to 79 percent in the current survey. In addition, career counseling fell from 32 percent to 29 percent over the past year. Professional development opportunities, however, remain very popular with approximately 94 percent of organizations offering these benefits for the last five years.
Most organizations (77 percent) did not impose travel restrictions or suspensions following the events of 9/11, although 38 percent did receive requests from employees not to travel on business. New to the survey this year are volunteerism programs and military leave. Currently, 33 percent of organizations offer paid or unpaid leave for volunteerism. About one-third (35 percent) of respondents say they offer military leave beyond what federal law requires.
The SHRM. 2002 Benefits Survey, funded in part by the SHRM Foundation, is available online for free to SHRM members at www.shrm.org/surveys. Non-members may purchase a survey for $125.00 by calling the SHRMStore at 1-800-444-5006.