Staff Report
Published Aug. 31, 2010

In-state businesses are attacking rising health care costs by expanding consumer-driven health care programs, adopting high deductible health plan options, initiating wellness programs, providing health risk assessments and banning tobacco from work campuses, a new survey reported.

The survey, 2010 South Carolina Employer Benefits Survey, was conducted by Upstate-based Rosenfeld Einstein, one of the Carolinas’ fastest-growing insurance agency/brokers.

As both cost and importance of benefits rises, employees nationwide now rank benefits as the second-most important aspect of job satisfaction, behind only job security. However, most employees spend fewer than 30 minutes to consider their benefits options during open enrollment periods, statistics show.

And as medical costs continue to rise across the nation, premiums for Preferred Provider Organization plans are lower on average in South Carolina at $389 for single coverage premiums versus a national average of $410.

High deductible health plans, which include those plans offering either a health reimbursement arrangement or health savings account, have grown to represent nearly 46% of surveyed plans across the state, up from 30% just two years ago, and are also priced advantageously compared to national levels. HDHP premiums in South Carolina average $319 single compared to $332 single on the national scene.

South Carolina businesses tend to require higher levels of employee contribution than do national organizations. For PPO single coverage, employees contribute an average of $71 toward premiums versus $67 nationally. For HDHPs, single coverage averages $39 versus $45 nationally.

Average deductibles run significantly higher as well, impacting South Carolinians. PPO deductibles in South Carolina average $1,159 for single coverage and $2,964 for family coverage, versus national averages of $634 and $1,488 respectively. Out-of-pocket maximums average $2,511 for single coverage in the Palmetto State as compared to $2,228 nationwide.

For HDHPs, single deductibles in South Carolina average $2,327 versus $1,838 nationally, while family deductibles average $4,667 in-state and $3,626 nationally.  Out-of-pocket maximums average only $739 single in South Carolina as compared to $2,385 nationwide, partially offsetting the impact of the higher deductible levels.

In assessing aggregated data, it showed:

• South Carolina is among national leaders in its exploration and consideration of Consumer Directed Healthcare Plans, which include high-deductible programs and uses HSAs and HRAs. Some 46% of surveyed companies currently offer such plans in the Palmetto State, up from just 30% two years ago.


• Wellness programs in South Carolina are gaining ground. Personal health assessments (offered by 38.2%, up from 25% in 2008), employee assistance programs (offered by 81.4%), discounts for non-tobacco use (19.4%, up from 6%) and banning of tobacco on campuses (43.6%) are positive indicators, Einstein notes.


• Nurse practitioners are now provided onsite by 13.9% of respondents.


• 57% of South Carolina companies offer employees more than a single plan to choose from, up from 45% in 2008; 8% offer employees three or more plans to select from.


• Office visit co-pays and prescription drug co-pays are very comparable to national averages, and generic co-pays are equal on average.


• 91% of employers offer 401(k), 403(b) or profit sharing plans to employees, with 65.8% offering a company match where applicable.


• Short-term disability coverage is offered by 81.4% of respondents, with 59.7% providing the coverage at no cost to employees.


• Long-term disability coverage is offered by 89.3% of respondents, with 70.9% providing the coverage at no cost to employees.


• Long-term care insurance is offered by 19.2% of state participants, cancer insurance by 42.9% and identity theft insurance by 6.2%.