Cost of Health Care Benefits Seen Rising 14.5% This Year
Retail/wholesale grocers and foodservice distributors experienced a 12 percent increase in healthcare costs over the last two years and they expect costs to rise another 14.5 percent in 2001, according to a new survey.
Results of the 2001 Healthcare Benefits Survey were released today in Houston at the Food Distributors International Productivity Convention and Exposition. The study, prepared by K-Management Resources, is a comprehensive review of the elements of FDI members' healthcare benefits packages and charts the results of 47 member companies (21 foodservice distributors and 26 retail/wholesale grocers) who participated in the survey, which was conducted in August.
Among other key findings:
* Retail/wholesale grocers (77 percent) are more likely to be at least partially self-insured for their healthcare benefits than foodservice distributors (50 percent).
* The median medical plan cost per employee is $2,772 annually, the average cost per employee is $3,353.
* Only 19 percent of foodservice distributor companies and 42 percent of retail/wholesale grocer companies have an indemnity medical plan option for their employees, while 100 percent of survey participants from both groups offer a managed care plan.
* Both classifications of companies are less likely to absorb all of the increased healthcare costs. More than half of the participants surveyed said they are passing a portion of cost to employees and searching for lower cost alternatives.
The survey presents data on the four primary elements of a healthcare benefits package--medical, dental, vision, and prescriptions--as well as other selected elements, such as employee assistance, wellness and fitness programs.
Results of the 2001 Healthcare Benefits Survey were released today in Houston at the Food Distributors International Productivity Convention and Exposition. The study, prepared by K-Management Resources, is a comprehensive review of the elements of FDI members' healthcare benefits packages and charts the results of 47 member companies (21 foodservice distributors and 26 retail/wholesale grocers) who participated in the survey, which was conducted in August.
Among other key findings:
* Retail/wholesale grocers (77 percent) are more likely to be at least partially self-insured for their healthcare benefits than foodservice distributors (50 percent).
* The median medical plan cost per employee is $2,772 annually, the average cost per employee is $3,353.
* Only 19 percent of foodservice distributor companies and 42 percent of retail/wholesale grocer companies have an indemnity medical plan option for their employees, while 100 percent of survey participants from both groups offer a managed care plan.
* Both classifications of companies are less likely to absorb all of the increased healthcare costs. More than half of the participants surveyed said they are passing a portion of cost to employees and searching for lower cost alternatives.
The survey presents data on the four primary elements of a healthcare benefits package--medical, dental, vision, and prescriptions--as well as other selected elements, such as employee assistance, wellness and fitness programs.