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South Carolina Gets Mixed Report Card in 2008 Employer Health Benefits Survey

GREENVILLE, SC – October 1, 2008 – Upstate-based Rosenfeld Einstein, one of the Carolinas’ fastest-growing insurance agency/brokers, presented the results of the 2008 South Carolina Employer Benefits Survey to more than 100 businesses from across South Carolina, noting that premiums for single and family coverage in South Carolina are now on average lower than premium averages nationally.

And while medical costs continue to rise across the nation, in-state businesses are attacking the problem by becoming a leader in examining consumer-driven healthcare programs, and offering high deductible health plans and other plan types for employees to choose from.

Preferred Provider Organization (PPO) plans, which comprise the bulk of survey participants and 64% of such plans across the state, average $356 for single coverage premiums and $1,000 for family coverage, versus national averages of $386 and $1,037 respectively.

High Deductible Health Plans (HDHPs) have grown to represent nearly 30% of surveyed plans across the state, up from 28% just two years ago. HDHP premiums in South Carolina also fall well below national averages, at $289 single/$848 family compared to $322 single/$891 family on the national scene.

Employee contributions are another story, however, as South Carolina businesses tend to require higher levels of employee contribution than do national organizations. For PPO single coverage, employees contribute an average of $63 towards premiums versus $60 nationally, and South Carolina families contribute $438 towards premiums versus $270 nationally.

Average deductibles run significantly higher as well, impacting South Carolinians. PPO deductibles in South Carolina average $918 for single coverage and $2425 for family coverage, versus national averages of $461 and $1,040 respectively. However, 19% of employers offer a Health Reimbursement Arrangement (HRA), which may cover a portion of these deductibles.

The findings were unveiled today in a private presentation to representatives of the businesses which participated in the 2008 South Carolina Employer Benefits Survey. Rosenfeld Einstein conducted the confidential survey between May and July 2008 in tandem with numerous human resource, chamber of commerce and economic development organizations across the state to help South Carolina business owners and company leaders benchmark their health benefit programs against peers and competitors, evaluate their competitive position, and determine if their organizations are providing competitive packages – or at risk of losing valued talent.

Among the many notable organizations supporting the initiative are Elliott Davis CPAs, the Upstate Alliance, Anderson Area Chamber of Commerce, Greenville Area Development Corporation, South Carolina Manufacturing Extension Partnership, and others.

“The tremendous participation from across the state validated our belief that businesses want actionable information to help them grow and succeed,” said Howard Einstein, principal of Rosenfeld Einstein. “Nearly 160 businesses from 35 cities across South Carolina and representing more than 46,000 jobs and dozens of industries entered their data, representing a total of almost $374 million in healthcare spending. These survey findings will provide them with actionable, current information previously unavailable to them anywhere else, and on a timely basis to guide future benefits planning decisions.”

Conducted online and containing over 200 data points, the Rosenfeld Einstein survey provides businesses with insight on how their own benefits package compare to competitors, and offers regional groups insight on new strategies for recruiting businesses, noted David Slade, an executive with Rosenfeld Einstein who presented the survey findings to attendees.

“A key value of this initiative is in helping companies understand where they are competitively, both locally and nationally, in recruiting and retaining their best associates,” noted Slade. “The survey data helps organizations and regions – like regional chambers and economic development organizations -- make better informed decisions about their benefit plans based on real-time market data.”

In assessing aggregated data from all companies and organizations combined, Slade and Einstein pointed out several notable insights, including:

• South Carolina is among national leaders in its exploration and consideration of Consumer Directed Healthcare Plans (CDHPs), which include high-deductible programs utilizing HSAs and HRAs. Some 30% of surveyed companies currently offer such plans in the Palmetto State
• Wellness programs are lagging far below national medians, with only 18% of South Carolina companies currently offering such programs compared to 31% doing so nationally -- in particular such programs as personal health assessments, employee assistance programs, blood pressure and cholesterol screenings, and smoking cessation programs lag national levels significantly
• Fully 45% of South Carolina companies offer employees more than a single plan to choose from; 9% offer employees 3 or more plans to select from
• Office visit copays and prescription drug copays are very comparable to national averages

Other information explored and detailed by the survey include analysis of plans in areas including:

 Deductibles
 Office Visit Co-payments
 Prescription Drug Co-payments
Monthly Premiums (Single/Family)
 Monthly Employee Contributions
 Implementation of wellness programs

Participating organizations receive a customized analysis comparing their plan to others locally and nationally. All information is held in confidence, and participating company information is only shared with that company.

Nearly 30% of companies contributing data represent the manufacturing/distribution industry in South Carolina, followed by construction (13 %), healthcare (11 %), government/municipalities (8%),and financial services, technology and professional services (7 % each). More than a dozen other industry sectors, from aviation and hospitality to real estate and telecommunications, also participated. Average employer size of participants was 400 employees, while the median employer size was 68 employees.

“We believe this diverse make-up is very representative of today’s evolving economic base in South Carolina,” said Einstein. “Manufacturing is still hugely important to our
state, yet we continue to see growth and evolution from the manufacturing base of years past to more of a knowledge-economy base. These numbers, and the diversity of these participating companies, really bears 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 every forward-thinking organization, and we’re pleased to make it available,” Slade added.

Organizations wishing to participate in the 2010 survey can email Rosenfeld Einstein at info@rosenfeldeinstein.com; they will then be contacted when preparations begin for the bi-annual initiative.

For additional information on Rosenfeld Einstein or the 2008 South Carolina Employer Benefits Survey, contact David Slade or Howard Einstein at (864) 271-6336 or via email at info@rosenfeldeinstein.com.

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Rosenfeld Einstein is a regional, full-service insurance agent/brokerage and consulting firm. Areas of specialty range from employee benefits to personal and commercial property and casualty, financial services, professional liability, risk management, claims management, workplace safety and wellness. Visit them on the web at www.RosenfeldEinstein.com.