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HighRoads' Energy Industry Health Care Survey

(August 18, 2010)
2010 Cost Increases of 7.5% Follow 2009 Cost Increases of 8.3%

Current Gross Cost Per Member Per Month (PMPM) Medical/Rx cost in 2010 is $427 while Employee Contributions PMPM are $94 for Participating Employers

HighRoads, an industry leader in employer health care compliance, consulting and benefits management, today announced results of a new 2010 survey of health benefit programs for the energy industry. The survey, based on the analysis of data from energy employers representing approximately 220,000 medical/RX enrolled employees and their insured, shows trends in energy industry plan options, plan designs, costs and focus on wellness.

"To help, many are increasing their focus on health and wellness screening and are turning to technology-based benefits management platforms to automate time consuming administrative processes to reduce costs without impacting plan value."

Results of the survey show the following:
  • 77% of the respondents utilize a POS/PPO-based design as the most prevalent plan option followed by HMO (17%) and HDHP at (6%)


  • 50% of the respondents indicated that a Blue Cross Blue Shield (BCBS) plan is the vendor of choice for the highest enrolled plan option followed by "other" (28%), Aetna (11%), United (6%) and CIGNA (6%)


  • 82% of respondents offer a health risk appraisal and 59% of the employers that responded offer a biometric screening


  • The current average gross cost per member per month (PMPM) is $427 and the current average employee contribution for PMPM is $94


  • The average in-network single deductible for the highest enrolled plan option is $270


  • The average in-network single out-of-pocket maximum for the highest enrolled plan option is $2,225


  • The average in-network coinsurance (employer paid) is 90%


  • The average in-network primary physician copay for the highest enrolled plan option is $22


  • The average retail generic Rx copay for the highest enrolled plan option is $12.50


  • The energy employers surveyed have an average workforce age of 42 and approximately 78% are male


"Like their peers in other market segments, Human Resources professionals in the energy industry face increasing pressure to balance quality employee benefits and lower costs," said Josh Miley, principal, HighRoads. "To help, many are increasing their focus on health and wellness screening and are turning to technology-based benefits management platforms to automate time consuming administrative processes to reduce costs without impacting plan value."


For more survey details, contact Josh Miley at jmiley @ highroads.com

HighRoads Data Research
HighRoads The Lab is the industry's largest real-time repository of health plan data, providing benchmarking data by which enterprises track market trends, research bids and conduct comparative analysis of cost factors. For more information go to www.thehrlab.com.

About HighRoads
The world's largest employers choose HighRoads to gain complete control over their health care costs and compliance. With HighRoads' service, employers have online access to benefits plan information and pricing, competitive benefits benchmarks, and complete benefits supply chain management. The privately-held company is headquartered in Woburn, MA. For more information, visit www.HighRoads.com.

Colleen Gildea
colleen@interbiznet.com



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