2012 Survey Results: Employee Benefits Benchmark Survey
In this recovering economy, employers across the country are taking a hard look at their current benefits offerings and asking what they can afford to keep, and what they can’t afford to lose.
As employers strive to strike a balance between providing a competitive benefits package and containing costs, survey results indicate respondentsare implementing cost-saving plans and strategies, while extending coverage to a greater number of individuals than ever before. To counter the cost of maintainingtheir valuable benefits, employers are revising the levels of coverage they offer, implementing consumerism strategies and lengthening elimination periods.
The 2012 Employee Benefits Benchmark Survey was conducted in mid-2012 and was available to individuals through the website. A total of 2,153 respondents completed the survey.
Demographic Information
In what state is your organization based (the most employees)?
New England – 8%
Mid-Atlantic – 8%
South Atlantic – 20%
East North Central – 13%
East South Central – 8%
West North Central – 11%
West South Central – 13%
Mountain – 7%
Pacific – 12%
In which industry/sector does your organization operate?
Agriculture, Forestry and Fishing (NAICS 11) – 2%
Construction (NAICS 23) – 9%
Education (NAICS 61) – 4%
Finance, Insurance (NAICS 52) and Real Estate (NAICS 53) – 10%
Health Care (NAICS 62) – 11%
Hotels/Hospitality (NAICS 72) – 2%
Legal (NAICS 5411) – 2%
Manufacturing (NAICS 31-33) – 16%
Nonprofit (NAICS 813) – 12%
Public Administration (NAICS 92) – 3%
Retail & Wholesale Trade (NAICS 42, 44-45) – 8%
Social Services (NAICS 62) – 1%
Transportation (NAICS 48-49), Communication (NAICS 517), Electric, Gas and Sanitary Services (NAICS 22, 56) – 5%
Other services not listed – 15%
How many employees does your organization have?
What is your organization’s annual revenue?
Health Care Benefits
The popularity of PPO plans continues to increase, with 68 percent of employers offering this type of plan (up from 67 percent in 2011) and half of all employers finding this to be the most popular option among employees.
The popularity of consumer-driven health plans among employers continues to grow, as an HDHP with an HSA is now the second most widely offered plan. However, many organizations continue to face employee resistance—only 14 percent of employers find their HDHP with an HSA plan to be the most popular option among employees, ranked third behind PPOs and HMOs.
What type of health care plans do you offer to employees?
Preferred Provider Organization (PPO) / 68%Point-of-Service Plan (POS) / 12%
Health Maintenance Organization (HMO) / 24%
Traditional Indemnity / Fee-for-Service Plan / 3%
Exclusive Provider Organization (EPO) / 2%
High-deductible Health Plan without account / 5%
High-deductible Health Plan with health savings account (HSA) / 29%
High-deductible Health Plan with health reimbursement arrangement (HRA) / 11%
Not sure / 1%
Other / 3%
Indicate the health plan in which the majority of your participants are enrolled.
Preferred Provider Organization (PPO) / 50%Point-of-Service Plan (POS) / 7%
Health Maintenance Organization (HMO) / 15%
Traditional Indemnity / Fee-for-Service Plan / 2%
Exclusive Provider Organization (EPO) / 2%
High-deductible Health Plan without account / 2%
High-deductible Health Plan with health savings account (HSA) / 14%
High-deductible Health Plan with health reimbursement arrangement (HRA) / 8%
Not sure / 2%
How is your organization's health plan funded?
Does your organization offer pretax flexible benefit options under Code Section 125?
For the health plan with the majority of participants enrolled, what is the single in-network deductible?
$0 / 10%$1 - $99 / 5%
$100 - $199 / 2%
$200 - $249 / 2%
$250 - $499 / 8%
$500 - $749 / 13%
$750 - $999 / 3%
$1000 - $1499 / 16%
$1500 - $1999 / 10%
$2000 - $2499 / 9%
$2500+ / 18%
Not sure / 4%
For the plan in which the majority of your participants are enrolled, what is the average annual total premium for covered workers forSINGLE coverage?
$3000 - $3499 / 13%$3500 - $3999 / 9%
$4000 - $4499 / 10%
$4500 - $4999 / 12%
$5000 - $5499 / 10%
$5500 - $5999 / 8%
$6000 - $6499 / 8%
$6500 - $6999 / 5%
$7000 - $7499 / 4%
$7500 - $7999 / 2%
$8000 - $8499 / 2%
$8500 - $8999 / 1%
$9000 - $9499 / 1%
$9500 - $9999 / 1%
$10,000 - $10,499 / 1%
$10,500 - $10,999 / 0%
$11,000 - $11,499 / 0%
$11,500 - $11,999 / 0%
$12,000 - $12,499 / 0%
$12,500 - $12,999 / 0%
$13,000+ / 3%
Don't know / 11%
For the plan in which the majority of your participants are enrolled, what is the average annual total premium for covered workers forFAMILY coverage?
$3500 - $3999 / 2%$4000 - $4499 / 1%
$4500 - $4999 / 1%
$5000 - $5499 / 1%
$5500 - $5999 / 1%
$6000 - $6499 / 1%
$6500 - $6999 / 1%
$7000 - $7499 / 2%
$7500 - $7999 / 1%
$8000 - $8499 / 1%
$8500 - $8999 / 2%
$9000 - $9499 / 2%
$9500 - $9999 / 2%
$10,000 - $10,499 / 4%
$10,500 - $10,999 / 3%
$11,000 - $11,499 / 2%
$11,500 - $11,999 / 3%
$12,000 - $12,499 / 5%
$12,500 - $12,999 / 4%
$13,000 - $13,499 / 4%
$13,500 - $13,999 / 3%
$14,000 - $14,499 / 7%
$15,000 - $15,499 / 5%
$15,500 - $15,999 / 3%
$16,000 - $16,499 / 2%
$16,500 - $16,999 / 2%
$17,000 - $17,499 / 2%
$17,500 - $17,999 / 2%
$18,000 - $18,499 / 3%
$18,500 - $18,999 / 2%
$19,000 - $19,499 / 2%
$19,500 - $19,999 / 1%
$20,000+ / 9%
Don't know / 13%
Which of the following cost-management measuresdoes your organization employ for your medical plan?
Study health care date for cost or utilization patterns / 32%Increase/enhance employee communications / 50%
Include resources to help employees become better consumers of health care / 51%
Increase the amount employees pay in contributions / 37%
Increase cost sharing to employees (co-pays, deductibles, coinsurance) / 48%
Restrict employee eligibility for coverage / 9%
Add/increase use of disease management / 10%
Wellness initiatives (including health risk assessments) / 45%
Other / 4%
Domestic Partner Benefits
The number of employers who extend benefits to an employee’s domestic partner is rapidly increasing, for both same-sex and opposite-sex domestic partners.
The percent of employers who offer benefits to married or unmarried same-sex domestic partners jumped to 28 percent, up from 21 percent in 2011. The increase in the percent of employers offering benefits to unmarried opposite-sex domestic partners is nearly as high, growing from 18 percent in 2011 to 24 percent.
Do you offer health benefits to unmarried opposite-sex domestic partners?
Do you offer health benefits to married or unmarried same-sex domestic partners?
Prescription Drug Plan
While the vast majority of employer-sponsored prescription drug coverage remains part of employers’ health care plans, the number of organizations utilizing a three-tier copay system has spiked to 73 percent, up from 51 percent in 2011.
Does your organization provide coverage for prescription drugs?
Which of the following cost-management techniques does your organization use for your prescription drug plan?
Three tiers for cost sharing (e.g., generic, brand-name and non-preferred brand-name drugs) / 73%Four or more tiers for cost sharing (e.g. generic, brand-name, non-preferred brand-name and specialty drugs. / 13%
Cover select over-the-counter drugs / 4%
Discontinue or limit coverage of lifestyle drugs / 4%
Require the use of generic drugs when available / 21%
Promote the use of generic drugs through financial incentives / 16%
Drug card program / 6%
Mail-order drug service / 58%
Prior authorization, utilization management / 11%
None of the above / 4%
Other / 2%
Dental Plans
Dental plans continue to be a popular way to add value to a benefits package, with 87 percent of employers currently offering a dental option, up from 85 percent in 2011.
While DPPO remains the most widely offered type of plan and the most popular option among employees, a greater number of employers are offering a DPOS plan, increasing to 17 percent from 14 percent in 2011.
Does your organization offer dental benefits?
Which of the following types of dental benefits does your organization offer?
Dental point of service plan (DPOS) / 17%Dental health maintenance organization (DHMO) / 11%
Dental preferred provider organization (DPPO) / 58%
Traditional indemnity/fee-for-service / 11%
Self-insured / 9%
Unknown / 6%
Other / 1%
Indicate the dental plan in which the majority of your participants are enrolled.
Dental point of service plan (DPOS) / 16%Dental health maintenance organization (DHMO) / 7%
Dental preferred provider organization (DPPO) / 53%
Traditional indemnity/fee-for-service / 10%
Self-insured / 7%
Unknown / 6%
Other / 1%
For the dental plan with the majority of participants enrolled, what is the annual in-network single deductible or annual single deductible?
$0 / 12%$1 - $19 / 1%
$20 - $39 / 9%
$40 - $59 / 47%
$60 - $79 / 2%
$80 - $99 / 0%
$100 - $149 / 4%
$150 - $199 / 2%
$200 - $249 / 2%
$250 - $299 / 2%
More than $300 / 4%
Unknown / 11%
N/A / 3%
Other / 2%
For the dental plan with the majority of participants enrolled, what is the annual out-of-network single deductible?
$0 / 8%$1 - $19 / 0%
$20 - $39 / 5%
$40 - $59 / 35%
$60 - $79 / 3%
$80 - $99 / 0%
$100 - $149 / 6%
$150 - $199 / 4%
$200 - $249 / 1%
$250 - $299 / 1%
More than $300 / 4%
Unknown / 20%
N/A / 11%
Other / 1%
For the dental plan with the majority of participants enrolled, what is the family deductible?
1 x single / 4%2 x single / 9%
3 x single / 39%
Single deductible for each member (no maximum) / 16%
Unknown / 17%
N/A / 11%
Other / 3%
For the dental plan with the majority of participants enrolled, what is the annual maximum or in-network annual maximum?
Less than $1000 / 9%$1,000 - $1,499 / 44%
$1,500 - $1,999 / 28%
$2,000 - $2,499 / 13%
$2,500 - $4,999 / 4%
$5,000 + / 4%
For the dental plan with the majority of participants enrolled, what is the out-of-network annual maximum?
Less than $1000 / 7%$1,000 - $1,499 / 35%
$1,500 - $1,999 / 22%
$2,000 - $2,499 / 10%
$2,500 - $4,999 / 3%
$5,000 + / 3%
N/A / 20%
For the dental plan with the majority of participants enrolled, what is the employee contribution percentage for single coverage?
0% / 23%1% - 9% / 5%
10% - 19% / 8%
20% - 29% / 12%
30% - 39% / 5%
40% - 49% / 2%
50% - 59% / 8%
60% - 69% / 1%
70% - 79% / 1%
80% - 89% / 1%
90% - 100% / 27%
N/A / 6%
For the dental plan with the majority of participants enrolled, what is the employee contribution percentage for family coverage?
0% / 10%1% - 9% / 4%
10% - 19% / 6%
20% - 29% / 12%
30% - 39% / 7%
40% - 49% / 4%
50% - 59% / 8%
60% - 69% / 2%
70% - 79% / 3%
80% - 89% / 2%
90% - 100% / 35%
N/A / 7%
For the dental plan with the majority of participants enrolled, what is the total MONTHLY dental plan cost for single coverage?
Less than $20 / 18%$20 - $29 / 27%
$30 - $39 / 26%
$40 - $49 / 10%
$50 - $59 / 5%
$60 - $69 / 2%
$70 - $79 / 1%
$80 - $89 / 0%
$90 - $99 / 0%
$100 - $124 / 1%
$125 - $149 / 0%
$150 - $174 / 0%
$175 - $199 / 0%
$200+ / 2%
N/A / 6%
For the dental plan with the majority of participants enrolled, what is the total MONTHLY dental plan cost for Family coverage?
Less than $20 / 3%$20 - $29 / 4%
$30 - $39 / 5%
$40 - $49 / 5%
$50 - $59 / 6%
$60 - $69 / 8%
$70 - $79 / 8%
$80 - $89 / 9%
$90 - $99 / 10%
$100 - $124 / 18%
$125 - $149 / 8%
$150 - $174 / 5%
$175 - $199 / 1%
$200+ / 4%
N/A / 7%
Life Insurance
The percent of employers offering basic life insurance remains steady at 85 percent, but there seems to be a slight shift in the level of coverage provided. Some employers are shifting to offer a level of coverage available in terms of a specific dollar amount, with a 1 to 2 percent increase in a majority of these coverage levels. Meanwhile, the percent of employers offering a level of coverage based on oneor two times an employee’s salary has decreased to 24 and 16 percent, down from 25 and 17 percent in 2011, respectively.
Do you offer basic life insurance?
What is the level of coverage available?
1 X salary / 24%2 X salary / 16%
3 X salary / 4%
4 X salary / 1%
5 X salary / 2%
$0 - $9,999 / 2%
$10,000 - $19,999 / 18%
$20,000 - $29,999 / 14%
$30,000 - $39,999 / 2%
$40,000 - $49,999 / 2%
$50,000 - $74,999 / 10%
$75,000 - $99,999 / 1%
$100,000+ / 4%
Who pays for the life insurance?
If not paid for by the employer, what percentage of the premium does the EMPLOYEE pay?
1% - 9% / 10%10% - 19% / 4%
20% - 29% / 14%
30% - 39% / 7%
40% - 49% / 3%
50% - 59% / 12%
60% - 69% / 2%
70% - 79% / 1%
80% - 89% / 1%
90% - 99% / 0%
100% / 45%
Do you offer employee supplemental life insurance?
What is the maximum level of coverage available?
1 X salary / 4%2 X salary / 4%
3 X salary / 7%
4 X salary / 3%
5 X salary / 20%
$0 - 49,999 / 4%
$50,000 - $99,999 / 7%
$100,000 - $149,999 / 9%
$150,000 - $199,999 / 4%
$200,000 - $249,999 / 7%
$250,000 - $499,999 / 14%
$500,000 or more / 17%
Who pays for thesupplemental life insurance?
What percentage of the premium is EMPLOYEE paid?
0% / 9%1% - 9% / 1%
10% - 19% / 1%
20% - 29% / 1%
30% - 39% / 1%
40% - 49% / 0%
50% - 59% / 1%
60% - 69% / 0%
70% - 79% / 0%
80% - 89% / 0%
90% - 99% / 0%
100% / 86%
Do you offer spousal life insurance?
What is the level of coverage available?
$0 - $9,999 / 11%$10,000 - $19,999 / 11%
$20,000 - $29,999 / 8%
$30,000 - $39,999 / 3%
$40,000 - $49,999 / 6%
$50,000+ / 60%
2012 Survey Results: Employee Benefits Benchmark Survey ● 1
Do you offer child(ren) life insurance?
What is the level of coverage available?
$0 - $4,999 / 16%$5,000 - $9,999 / 18%
$10,000 - $19,999 / 53%
$20,000+ / 13%
Accidental Death and Dismemberment Insurance
Fewer employers now offer AD&D coverage than last year—74 percent compared to 76 percent in 2011. Of those employers, only 74 percent are willing to pay the entire premium, down from 79 percent in 2011.
Similar to trends in life insurance, employers seem to be shifting to offer levels of coverage in terms of specific dollar amounts, rather than basing coverage on an employee’s salary.
Do you offer AD&D coverage?
What is the level of coverage available?
1 X salary / 25%2 X salary / 15%
3 X salary / 4%
4 X salary / 1%
5 X salary / 6%
$0 - $9,999 / 3%
$10,000 - $19,999 / 11%
$20,000 - $29,999 / 10%
$30,000 - $39,999 / 2%
$40,000 - $49,999 / 1%
$50,000+ / 20%
Who pays for the AD&D insurance?
What percentage of the premium is EMPLOYEE paid?
1% - 9% / 3%10% - 19% / 2%
20% - 29% / 4%
30% - 39% / 3%
40% - 49% / 1%
50% - 59% / 6%
60% - 69% / 0%
70% - 79% / 0%
80% - 89% / 1%
90% - 99% / 0%
100% / 79%
Short-term Disability Insurance
Short-term disability coverage remains a fairly popular way for employers to add value to their benefits programs, with 65 percent continuing to offer coverage. While 5 to 8 days is still the most widely offered elimination period for both accidents and illnesses, it seems to be decreasing in popularity—37 percent of employers offer this option for accidents, down from 40 percent in 2011, and 49 percent offer this period for illnesses, down from 55 percent in 2011.
Do you offer Short Term Disability Coverage?
What is the elimination period (number of days an employee must be absent before benefits begin) for an accident?
0 - 4 days / 18%5 -8 days / 37%
13 - 15 days / 21%
29 - 30 days / 6%
60 days / 1%
90 days / 4%
Unknown / 7%
Other / 5%
What is the elimination period (number of days an employee must be absent before benefits begin) for an illness?
0 - 4 days / 5%5 -8 days / 49%
13 - 15 days / 22%
29 - 30 days / 7%
60 days / 1%
90 days / 3%
Unknown / 8%
Other / 4%
What percentage of salary is paid?
50% / 5%60% / 45%
66.60% / 17%
70% - 75% / 6%
100% / 3%
Employee selects / 7%
Paid on a flat dollar amount / 6%
Based upon years of service / 3%
Other / 7%
What is the duration?
less than 9 weeks / 5%9 - 12weeks / 31%
13 - 20 weeks / 15%
26 weeks / 34%
52 weeks + / 3%
Depends on plan selected / 14%
Who pays for the STD insurance?
What percentage does employee pay?
1% - 9% / 4%10% - 19% / 2%
20% - 29% / 2%
30% - 39% / 1%
40% - 49% / 1%
50% - 59% / 4%
60% - 69% / 0%
70% - 79% / 1%
80% - 89% / 1%
90% - 99% / 0%
100% / 84%
Long-term Disability Insurance
Currently, long-term disability insurance is offered by 67 percent of employers and 69 percent of those plans are completely employer funded. This is a drop from 68 and 73 percent in 2011, respectively.
Do you offer Long Term Disability Coverage?
What is the elimination period (number of days an employee must be absent before benefits begin)?
Less than 90 days / 10%90 days / 57%
180 days / 28%
365 days / 1%
Other / 3%
What percentage of salary is paid?
50% / 6%60% / 60%
66.66% / 22%
70% / 5%
100% / 2%
Paid on a flat dollar amount / 2%
Other / 4%
What is the maximum monthly benefit?
$1000 - $2,500 / 11%$2500 - $4,999 / 18%
$5,000 - $9,000 / 36%
$10,000 or more / 18%
There is no maximum / 11%
Other / 6%
Who pays for the LTD insurance?
What percentage does the employee pay?
1% - 9% / 4%10% - 19% / 1%
20% - 29% / 3%
30% - 39% / 2%
40% - 49% / 1%
50% - 59% / 8%
60% - 69% / 1%
70% - 79% / 2%
80% - 89% / 0%
90% - 99% / 0%
100% / 78%
Employee Assistance Programs
There was a slight drop in the percent of employers offering employee assistance programs, with 48 percent this year compared to 49 percent in 2011.
Do you have an Employee Assistance Program?
Disease Management Program
The number of employers that offer a disease management program has dropped slightly—only 15 percent of employers offer this benefit, down from 16 percent in 2011.
Do you have a disease management program?
What type of voluntary (employee-pay-all)GROUP benefits do you offer, or plan to offer, your employees?
Top number is the count of respondents selecting the option. Bottom % is percent of the total respondents selecting the option. / Offer Now / Plan to Add in the Next Year / Don't OfferMedical or mini-medical / 750 / 15 / 1388
35% / 1% / 64%
Dental / 1089 / 23 / 1041
51% / 1% / 48%
Vision / 984 / 46 / 1123
46% / 2% / 52%
Term Life / 1099 / 38 / 1016
51% / 2% / 47%
Whole or Universal Life / 360 / 29 / 1764
17% / 1% / 82%
Long Term Care / 257 / 64 / 1832
12% / 3% / 85%
Long Term Disability / 856 / 37 / 1260
40% / 2% / 59%
Short Term Disability / 971 / 32 / 1150
45% / 1% / 53%
Group Legal / 164 / 17 / 1972
8% / 1% / 92%
Critical Illness/Cancer / 688 / 45 / 1420
32% / 2% / 66%
Accident / 800 / 35 / 1318
37% / 2% / 61%
Home & Auto / 85 / 20 / 2048
4% / 1% / 95%
Membership or discount programs / 385 / 39 / 1729
18% / 2% / 80%
Pet Insurance / 52 / 14 / 2087
2% / 1% / 97%
Other / 80 / 10 / 2063
4% / 0% / 96%
What type of voluntary (employee-pay-all)INDIVIDUAL benefits do you offer, or plan to offer, your employees?
Top number is the count of respondents selecting the option. Bottom % is percent of the total respondents selecting the option. / Offer Now / Plan to Offer in the Next Year / Don't OfferMedical or mini-medical / 461 / 12 / 1680
21% / 1% / 78%
Dental / 746 / 22 / 1385
35% / 1% / 64%
Vision / 678 / 39 / 1436
31% / 2% / 67%
Term Life / 842 / 32 / 1279
39% / 1% / 59%
Whole or Universal Life / 353 / 17 / 1783
16% / 1% / 83%
Long Term Care / 265 / 43 / 1845
12% / 2% / 86%
Long Term Disability / 603 / 27 / 1523
28% / 1% / 71%
Short Term Disability / 775 / 29 / 1349
36% / 1% / 63%
Group Legal / 120 / 19 / 2014
6% / 1% / 94%
Critical Illness/Cancer / 685 / 45 / 1423
32% / 2% / 66%
Accident / 709 / 32 / 1412
33% / 1% / 66%
Home & Auto / 80 / 22 / 2051
4% / 1% / 95%
Membership or Discount Programs / 278 / 38 / 1837
13% / 2% / 85%
Pet Insurance / 48 / 19 / 2086
2% / 1% / 97%
Other / 68 / 16 / 2069
3% / 1% / 96%
Retirement Plans
While only 26 percent of employers currently offer a defined benefit pension plan, a vast majority—84 percent—offer some sort of defined contribution pension plan, the most popular of which is a 401(k).
Does your organization currently offer a defined benefit pension plan?
Does your organization offer a defined contribution pension plan? (i.e. 401(k), 403(b) etc.)
Which of the following types of defined contribution plans does your organization offer? (Select all that apply.)
401(k) / 78%403(b) / 15%
457 plan / 8%
Employee stock ownership plan (ESOP) / 3%
Money purchase plan / 1%
Profit-sharing plan / 14%
Savings and thrift plan / 0%
Savings incentive match plan for employees (SIMPLE) / 4%
Other / 4%
2012 Survey Results: Employee Benefits Benchmark Survey ● 1
Contact Robertson Ryan & Associates to discuss how this survey information can assist you in your future benefit plan strategies.
This survey was conducted in mid-2012 and was available to approximately 400,000 individuals through the client portal website provided by Robertson Ryan & Associates. This survey was anonymous, so responses have not been validated for statistical significance or margin of error.
© 2012 Zywave, Inc. All rights reserved.
2012 Survey Results: Employee Benefits Benchmark Survey ● 1