Troy, Mich.-based benefits broker McGraw Wentworth released the results of its 2005 Southeast Michigan mid-market group benefits survey. The survey compares benefit plans and trends among 465 mid-sized organizations in Southeast Michigan with 100 to 12,000 employees.
The survey results revealed three major trends according to Bill Wentworth, principal of McGraw Wentworth:
— Health care cost increases in Southeast Michigan are down, but are
higher than national increases.
— There remains a definite distinction between union and nonunion plans. The cost of union benefit plans continues to be higher than nonunion.
— Southeast Michigan continues to offer benefit levels that are well above the national market level.
From a benefit plan design perspective the following trends emerged:
— 2005 health plan cost increases, which averaged 9 percent after plan changes, were below last year’s increase of 11 percent, but above the national average of 7.5 percent.
— The division between union and nonunion plans in Southeast Michigan continues. On average, unionized employees pay only 15 percent of the cost of single coverage versus 21 percent for nonunion employees — for family coverage, the difference is 16 percent versus 24 percent.
— The national trend toward increased consumerism in health plan design is gaining acceptance in Southeast Michigan. While only 5 percent of employers offer a consumer-driven health plan in 2005 (up from 2.6 percent in 2004), 19 percent indicated they are considering implementing one in 2006.
Four hundred and sixty-five organizations participated in the McGraw Wentworth Mid-Market Benefit Survey — representing an aggregate of nearly 400,000 employees and nearly $3.3 billion health-care dollars. Industry representation breakdown is as follows: 36 percent manufacturing, 5 percent wholesale/retail, 30 percent services, 3 percent transportation/communication/utilities, 5 percent health care, 6 percent financial services, 7 percent public schools and 8 percent government. Forty-two percent/195 of the employers who participated had some number of union employees.
Organizations from Genesee, Ingham, Livingston, Macomb, Oakland, Washtenaw and Wayne counties participated. The survey was conducted online from Feb. 1 through May 6, 2005. For complete survey results, please contact Becky McLaughlan at (248) 822-8000.
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