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Lindex® Score Remains Unchanged in 2019

Four color-coded quartiles represent the strength of benefits offered.

We’ve just released the new Lindex®scores based on our 2019 Iowa Employer Benefits Study©. Introduced in 2012, the Lindex is an innovative tool that allows Iowa employers to distill voluminous and complicated benefits data into one relevant number.

An organization’s Lindex score may help Iowa employers to:

  • Determine the competitiveness of their benefits package.
  • Attract and retain a high-quality workforce.
  • Decide whether benefit changes are required to keep your employee benefits competitive.

The Lindex is a composite score used as a reference when determining the quality of benefits offered by Iowa organizations. This index is the result of a sophisticated calculation based on the benefits data submitted by 999 Iowa organizations from the latest 2019 Iowa Employer Benefits Study©.

Calculated once a year, the Lindex ranges from 0 to 100, with low scores reflecting fewer benefits offered at a higher cost to employees, while higher scores indicate more benefits being offered at a competitive cost.

In 2019, the overall Lindex score for Iowa employers (regardless of employer size and industry) is 76 – which is unchanged from 2018.

The Lindex score will vary based on the employer size and industry, which are two determining factors that affect employee benefits. For example, employers with fewer than 10 employees have a Lindex score of 64, while employers with 1,000+ employees averaged 89.  Below is a summary graphic of the Lindex scores based on organization size:Employers in the construction industry averaged 64, while colleges and universities averaged a score of 92. Below is a summary graphic of the Lindex scores based on industry:The Lindex calculation began during the 2012 survey year. As depicted in the graphic below, between 2012 and 2015, the Lindex was calculated using five employer size categories: 2-9, 10-19, 20-49, 50-249, 250-999 and 1,000+. The top of the graphic provides the Lindex score based on size categories (by year), while directly below this is a color-coded chart showing the Lindex scores based on quartiles for each year. For example, the scores of the smallest organization-size category (2-9) is depicted in red, meaning this size typically scores in the lowest-scoring quartile. The scores of the next two size categories, 10-19 and 20-49, fell in the second quartile (orange). Without fail, the next size category of 50-249 scored in the third quartile (yellow), while organizations with over 250 employees were offering the most comprehensive benefits – noted in green, the fourth quartile.Beginning in 2016, the organization-size categories were altered somewhat, primarily to shadow many provisions found in the Affordable Care Act (ACA). The graphic below depicts the average Lindex scores by organization size and the quartiles that each size category are found. The quartile results are similar to the results found in the previous graphic.Finally, with any selected industry, it is interesting to compare the Lindex scores by size categories.  As an example, the following graphic compares ‘for-profit’ organizations with ‘non-profit’ organizations. With the exception of organizations that have 1,000+ employees (both scored equally at 89), all ‘for-profit’ size categories scored less-favorably when compared to scores of ‘non-profit’ organizations (see graphic below).  Non-profit organizations clearly offer more comprehensive benefits than their for-profit counterparts.Should you wish to learn more about the Lindex, and how your organization can obtain your own Lindex calculation, please visit the Frequently Asked Questions (FAQ) section of our website.

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2019 Iowa Employer Benefits Study©
Employers Report 7.1% Increase in Health Premiums

Today, we issued our 20th Iowa Employer Benefits Study© results. As with past studies, the wealth of data is immense. This year’s study found that Iowa employer health insurance premiums increased an average of 7.1 percent from 2018 to 2019.

The 7.1 percent increase is an average that factors in employers receiving no rate change, an increase or decrease in their health premiums. This number represents the average increase in premiums employers received PRIOR to making design changes to their medical plans – such as increasing cost-sharing arrangements with employees.

The 2019 Iowa Employer Benefits Study© found that average annual premiums for employer and employee contributions (combined) were $7,017 for single coverage and $19,335 for family coverage. Since 1999, the year this study began, the single premium has increased by 240 percent while the family premium has jumped by 251 percent. (NOTE: In a number of slides below, the year 2017 was excluded because no survey was performed.)

During the post-ACA period (2011-2019), total family premiums increased by 45.4 percent, while employees with family coverage experienced a 30.5 percent increase to their payroll-deducted premiums. Employers continue to make sizeable contributions to keep the employee cost ‘manageable.’ This information is depicted in the following graph.

How did Iowa employers respond? They continue to ratchet up employee cost-sharing arrangements by increasing employee premium contributions and plan-sharing responsibilities, which results in higher deductibles and out-of-pocket maximums.

For the first time in this study’s history, employers were asked to gauge their ‘cost-shifting fatigue.’ On a 10-point scale, where 1 means the employer has a minimum cost-shifting fatigue and 10 means the employer has reached its limit of shifting costs to employees and is now considering to no longer offer health coverage, Iowa organizations reported their fatigue level was 3.5 out of 10. Despite experiencing rate hikes for years, Iowa employers are not yet likely to discontinue offering health coverage. Below is a slide that depicts employer responses by employee-size categories.

Iowa employees were asked to contribute an annual average of $1,313 for employee-only coverage, while employees with family members were asked to pay $5,794 annually. Over the course of 20 years (1999-2019), employee contributions have increased by 196 percent for single coverage and 173 percent for family coverage.

The overall 2019 statewide weighted-average deductible for single coverage is now $2,192, while the family weighted-average is $3,975. Since 2004, deductibles for both single and family have risen by 288 percent and 235 percent, respectively.

The post-Affordable Care Act (ACA) period (2011-2019) reveals the deductibles continue to climb for both single and family coverages, approximately 46 percent and 25 percent respectively.

In addition to revealing updated results for dental coverage, group life insurance, short and long-term disability coverages, the 2019 Study also reveals whether Iowa organizations offer a large number of work-life and convenience benefits in their workplace setting. The top five benefits offered by Iowa employers include:  Jury Duty Leave (89.2 percent), Bereavement/Funeral Leave (87.5 percent), Unpaid Leave (83.7 percent), Maternity Leave (72.6 percent), and Personal Days (63.6 percent).

The above information is just a small fraction of our survey results. The complete 2019 Iowa Employer Benefits Study© is available for purchase and download on this site.

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2019 Iowa Employer Benefits Study© is Now Available!

2019 Iowa Employer Benefits Study©The 2019 Iowa Employer Benefits Study© overall summary is now available! As we have done with recent studies, we are providing this summary report through an electronic download only, rather than a printed hard copy.

The press release for this Study will be issued tomorrow, August 8.

As mentioned in a previous blog, we had 999 Iowa organizations participate in this year’s survey, reaching our goal of 1,000 respondents. In addition to the standard benefit questions presented each year, we asked organizations to share data on whether work-life and convenience benefits were offered by Iowa organizations, benefits that are highly-valued by employees.

If your organization participated in this year’s survey, we sincerely thank you for sharing your data with us and for your patience while the report was being published. We realize that many employers wish to use the results of this important Study during the fall enrollment process. On July 10th, participants in this Study were sent an email from us with a unique link to gain access to this report (at no cost).

If you have any questions, please don’t hesitate to contact us. Again, we greatly appreciate your interest in this 20th study!

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