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ADP Survey of Large Employers

By February 13, 2013Commentary

Payroll and benefits management firm ADP issued results of a survey on large employers’ approaches to and actions on health benefits in the past and present year.   (ADP Survey)  Firms with more than 1000 employees were included, and there were 300 companies with over 900,000 employees who responded.  The results indicate that health premiums per employee for these firms were about $9562, not including HRA or HSA funding costs.  Employers paid about 76% of this cost and employees picked up the rest. Companies with more than 5000 employees paid about 14% less than those in the 1000 to 2500 employee range.  Premiums were higher in manufacturing, professional services, and health care industries and lower in the hotel and restaurant ones.  Much of these differences, however, may be due to differences in benefits or to demographic factors of the worker population, such as age.  Many manufacturers, for example,  are unionized and have richer plans.  About 23% of all positions were classified as part-time and only 15% of these were eligible for benefits and of that 15% only 53% elected to take coverage, versus 77% of full-time employees.  Under the reform law, generally employees who work 30 or more hours a week or 130 or more hours a month must be offered benefits.  This may mean that more part-time employees may be eligible for benefits or it may cause employers to ensure that part-time employees do not work enough hours to be eligible for benefits.

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