A/E Employees Paying More for Health Care Coverage

NATICK, Mass. -- Architecture, engineering, planning and environmental consulting firms are becoming more and more likely to require employees to contribute to health insurance premiums, according to a recent survey by industry consultant ZweigWhite.
The report revealed that 61% of A/E firms require employees to contribute to both employee-only and employee/family health insurance premiums, while 57% require employees to contribute to both types of dental insurance premiums.

Both numbers represent all-time highs, a sharp increase from the 40% and 45% reported four years ago for health and dental insurance premiums, respectively.
Laura Rothman, an associate with Massachusetts-based ZweigWhite and the managing editor for the report, says the likely cause for an increased percentage of firms requiring employee contributions is the dramatic increase in insurance costs over the past few years. "Additional data collected for other ZweigWhite management surveys show A/E and environmental firms are paying more in group insurance costs than ever reported before," she said.

On a per-person basis, group insurance costs hit a four-year high in 2003, at a median of $3,525 per employee, according to Rothman. "With insurance expenses this high, many firms have no choice but to pass along some of the cost to employees," she said.

The 2004 Policies, Procedures & Benefits Survey of A/E/P & Environmental Consulting Firms is available from the publisher for $345, plus $4 shipping and handling.

Contact ZweigWhite, P.O. Box 8325, One Apple Hill Dr., Natick, MA 01760. They can be reached at (508) 651-1559.