By SCBIZ Staff 

Fifty-nine percent of companies in North and South Carolina had a health insurance premium increase, according to the Compensation Data 2007 — Carolinas annual survey of 248 employers. When compared to 2006, this number has decreased. The newly released results reported the average premium increase was 9.6% for all plan types.

Health insurance premiums have been increasing at a slower rate over the last three years. In 2006, the average premium increase was 10.9% and then, 11.8% the previous year. When comparing plans in 2007, 63.3% of organizations offering PPO plans saw an average increase of 9.5%, while HMO and POS plans had average premium increases of 9.5 and 14.3%, respectively.

To contain rising costs, North and South Carolina organizations used a variety of methods. Coordination of benefits was the most highly used method at 73.7% in 2007, while wellness programs were employed by 67.2%. A network of health care professionals was prevalent, as 64.4% of organizations used it to contain costs.

The results showed 38.1% of North and South Carolina companies increased the employee portion of the premium in their efforts to reduce costs. This is 6.1% higher than it was in 2006. Currently, 26.7 and 16.6% of organizations increased deductible levels and employee co-insurance levels respectively. On average, employers contribute 9.6% of payroll toward the cost of health benefits, which is close to the cost to provide all of the following benefits: dental, pension, life, disability and other non-mandated benefits.

"Health insurance continues to be a concern for both employers and employees across the United States," said Amy Kaminski, manager of marketing programs for Compdata Surveys. "And as the presidential election approaches, candidates' health care plans will remain a primary focus of debate. However, most companies are concerned with how to contain costs now, and in response, some states are exploring legislative measures."