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SC Gets Mixed Report Card in 2006 Employer Health Benefits Survey

GREENVILLE, SC - September 26, 2006 - Upstate-based Rosenfeld Einstein, a major regional insurance agent/broker, told more than 160 businesses from over 20 cities across South Carolina that the state's medical costs may be rising somewhat faster than the national average, but that in-state businesses are attacking the problem by being a national leader in examining consumer-driven healthcare programs.

Preferred Provider Organization (PPO) plans, which comprise the bulk of survey participants and the majority of such plans across the state, saw medical cost increases averaging 12% year to date in 2006, versus a 9% median increase nationally in 2005, the latest period such national data is available (see Exhibit A).

The findings were unveiled today in a private presentation to representatives of the business which participated in the 2006 South Carolina Employer Health Benefits Survey since its launch in early July. Rosenfeld Einstein conducted the confidential survey in tandem with a national actuarial consulting firm to help 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.

Additionally, insurance plans in South Carolina are somewhat less rich - a term alluding to the overall value for the invested dollar - than median plans across the nation (see Exhibit B).

"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 170 businesses from across South Carolina representing more than 57,000 jobs and dozens of industries entered their data, providing actionable, current information previously unavailable to them on such a timely basis."

Containing over 300 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 like HSAs and HRAs. Some 28% of surveyed companies currently offer such plans, and 33% more are considering them, compared to national levels of 8% offering and 41% considering
• Wellness programs are lagging far below national medians, in particular such growing programs nationally as employer-provided medical information, employee assistance programs, blood pressure and cholesterol screenings, and smoking cessation programs (see Exhibit C)
• Fully 50% of South Carolina companies offer employees more than a single plan to choose from; 12% offer employees 3 or more plans to select from
• Median PPO plan deductibles are higher than national levels (in-Network deductibles in South Carolina average $750 versus $300 nationally) while out-of-pocket maximums, office visit copays and prescription drug copays are virtually identical to national averages
• Monthly premiums for PPO plans in South Carolina are virtually identical to national norms (individual employee: $305 in SC, $313 nationally; family $877 in SC, $903 nationally). However, employee contributions to family plans is significantly higher ($439 in SC versus $235 nationally).

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

• Deductibles
• Office Visit and Prescription Drug Co-payments
• Monthly Premiums (Single/Family)
• Employee Contributions
• PPO v. Consumer Directed plan costs
• Benefit offerings
• Paid Time Off

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.

Of the companies contributing data to the survey, 28% represent the manufacturing and/or distribution industry in South Carolina, followed by the service industry (18%), healthcare (17%), financial services (10%) and construction (6%). More than 20 other industry sectors, from technology and regional government to utilities and telecom, also participated. Average employer size of participants was 342 employees, while the median employer size was 52 employees.

"We believe this diverse make-up is very representative of today's 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 2007 survey can email Rosenfeld Einstein at info@rosenfeldeinstein.com; they will then be contacted when preparations begin for the 2007 survey.

For additional information on Rosenfeld Einstein or the 2006 South Carolina Employer Health Benefits Survey, contact David Slade or Howard Einstein at (864) 271-6336 or via email at info@rosenfeldeinstein.com.

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 us on the web at www.RosenfeldEinstein.com.