2015 MERCER BENEFITS ANALYSIS REVIEW

Transcription

1 2015 MERCER BENEFITS ANALYSIS REVIEW

2 Definitions Top Management (Top Mgt) Management (Mgt) Professionals (Prof) Staff (Staff) Employees with roles such as Head of rganization, Function Heads. Typical Career Level: M6-M7, 11-13, I6 Typical position classes: PC58 and above Employees with roles such as Sub-Function Head, and Functional Managers. Employees with important supervisory and managerial responsibilities, usually the higher levels within a business unit or company. Management-level employees focus on managing people and implementing policies and strategies to meet the company s objectives. Has managerial responsibility for a department or team. Combines both middle and senior management. Typically reports to an executive. i.e. Finance Managers, HR Managers, IT Managers, and Plant Managers, Senior Sales Management, and Senior Marketing Management. Typical Career Level: M1-M5, Typical position classes: PC54-57 Works as a professional in a technical or professional sales or professional non-sales role. Professionals are typically individual contributors without supervisory responsibility, though may provide coaching/mentoring to less experienced staff. Typically holds a university degree or full-trade equivalent. Typically reports to a manager. Exempt staff including Specialists, Professional, or Technical staff who may be supervisors. Typical Career Level: I1-I5; Typical position classes: PC47-53 Non-Exempt staff, Support staff, or Customer Service Representative. Salaried employees typically in a business support, analyst, administrative or technical role. These are generally employees in a skilled, semi-skilled or unskilled role without supervisory responsibility. Typically reports to a manager/ supervisor. This level does not require a university degree but may require formal professional training and certification. i.e. Admin Staff, Secretary, Clerk, Engineer (entry) Typical Career Level: P1-P3, Typical position classes: PC46 and below

3 Co-payment Panel doctor Premium Sharing Portion of incurred medical expenses, either a fixed percentage or amount that the patient must pay out of pocket. Medical services obtained by employees from affiliated or contracted health care providers. An arrangement in which the company and employee both share in the payment of premium for insurance.

4 Country: Above market offering Benefit is provided by client Singapore My Company Market Prevalence Top Management Management Professional Staff % of companies with claim sharing arrangements Employee % of companies providing coverage for TCM and alternative medicines Annual limit of outpatient clinical combined with other benefits Per dependent (SGD) utpatient Clinical Benefits % of companies providing outpatient clinical benefits % of companies providing outpatient clinical coverage to dependants % of companies with claim sharing arrangements Dependent Annual limit of outpatient clinical combined with other benefits Per employee (SGD) Annual limit of outpatient clinical as a standalone benefit Per employee (SGD) Annual limit of outpatient clinical as a standalone benefit Per dependent (SGD) 100% 78% 0% 11% 26% 13% 59% 2,000 2,000 2,000 * Unlimited * Unlimited * Unlimited * Unlimited * Unlimited * Unlimited * Unlimited * Unlimited * utpatient Clinical Benefits All of the peer companies provide outpatient clinical benefits to employees. Companies typically extend this to dependents. If extended, dependent coverage typically includes employees spouse and children. 63% of peer companies insures this benefit. Premiums for employees are paid in full by these companies. The majority of peer companies do not require employees to co pay for their outpatient clinical expenses. If required, the co payment amount is typically a fixed amount of SGD 5 for both employees and dependents. 61% of companies combine the annual limit for outpatient clinical benefit with other outpatient benefits, primarily outpatient specialist coverage. The majority of these companies provide a fixed annual limit, with only 13% of companies offering unlimited coverage. 85% of companies have a panel doctor network, most of which all allow employees to visit non panel doctors. For companies with a panel doctor network, the majority of these companies limit the claim amount when visiting a non panel doctor at a median of SGD 30 per visit. Reimbursement of TCM consultations and alternative medicines is increasingly prevalent, with 59% of companies offering such coverage. Note: Client offers employees and eligible dependents unlimited outpatient clinical coverage to panel clinics, which is well above what peer companies provide. However, it is noted that client adopts a comparatively restrictive policy for visits to non panel clinics by limiting both the number of visits per year and the claim amount per visit. It is a common practice for peer companies with a panel doctor network either limit the claim amount per visit or to a lesser extent, the number of visits per year.

5 Country: Above market offering Benefit is provided by client Singapore My Company Market Prevalence Top Management % of companies providing outpatient specialist benefits % of companies providing outpatient specialist coverage to dependants % of companies with claim sharing arrangements Employee % of companies with claim sharing arrangements Dependent % of companies that require a referral letter utpatient Specialist Benefits Annual limit of outpatient specialist combined with other benefits Per employee (SGD) Annual limit of outpatient specialist combined with other benefits Per dependent (SGD) Annual limit of outpatient specialist as a standalone benefit Per employee (SGD) Annual limit of outpatient specialist as a standalone benefit Per dependent (SGD) Management Professional 96% 70% 0% 13% 33% 11% 78% 1,500 1,500 1,500 1,500 1,125 1,125 1,250 1,375 Unlimited 1,100 Unlimited 1,100 Unlimited 1,100 Unlimited 1,000 Unlimited 1,200 Unlimited 1,200 Unlimited 1,200 Unlimited 900 utpatient Specialist Benefits It is a market practice to provide outpatient specialist benefits to employees. Companies typically extend the benefit to dependents mainly spouse and children. 61% of peer companies insures this benefit, with all of these companies bearing the full cost of premiums for employees. The majority of peer companies do not require employees to co pay for their outpatient specialist expenses. If required, the co payment amount is typically a median of SGD 15 or 15% of the claim amount. 65% of companies combine the annual limit for outpatient specialist benefit with other outpatient benefits. utpatient clinical is the most common item that is included in the combined limit. For companies that offers outpatient specialist as a standalone benefit, the majority of these companies provide outpatient specialist benefit as an annual limit as opposed to a per disability limit. 70% of companies have a panel doctor network, of which the majority allows employees to visit a non panel doctor. 20% of companies limit the claim amount when visiting a non panel doctor at a median of SGD 150 per visit. Note: Similar to outpatient clinical coverage, client offers employees and eligible dependents unlimited outpatient specialist coverage, which is well above market practice. In addition, client provides a comprehensive coverage which includes dianostic tests and overseas outpatient treatment which is not a prevalent provision. Staff

6 Above market offering Benefit is provided by client Country: Singapore My Company Market Prevalence Top Management Management Professional Staff Hospital Surgical Benefits % of companies providing hospital and surgical benefit 96% % of companies providing hospital and surgical coverage to dependents 72% 0% 7% % of companies with claim sharing arrangements Employee 17% % of companies with claim sharing arrangements Dependent 9% % of companies providing Room & Board based on the class of ward 74% % of companies providing Room & Board based on amount per day Room & Board Maximum amount per day (SGD) Room & Board Maximum number of days covered Intensive Care Unit Maximum amount per day (SGD) Intensive Care Unit Maximum number of days covered Intensive Care Unit Maximum lump sum amount (SGD) Hospital Miscellaneous Services Maximum amount covered (SGD) Surgery Maximum amount covered (SGD) Anaesthetist Fees Maximum amount covered (SGD) In Hospital Attending Doctor's Visit Maximum amount covered per visit (SGD) 37% , As charged 10,000 As charged 10,000 As charged 10,000 As charged 10,000 As charged 5,000 As charged 5,000 As charged 5,000 As charged 5,000 As charged 8,000 As charged 7,750 As charged 7,500 As charged 7,000 As charged 5,000 As charged 5,000 As charged 6,500 As charged 3,750 As charged 120 As charged 120 As charged 100 As charged 100 Pre Hospitalization Specialist Consultation Maximum amount covered (SGD) As charged 1,500 As charged 1,500 As charged 1,500 As charged 2,000 Pre Hospital Diagnostic Maximum amount covered (SGD) As charged 1,000 As charged 1,000 As charged 1,000 As charged 1,250 Emergency Accident utpatient Treatment Maximum amount covered (SGD) As charged 2,000 As charged 2,000 As charged 2,000 As charged 1,875 Post Hospitalization Treatment Maximum amount covered (SGD) As charged 750 As charged 750 As charged 750 As charged 1,000

7 Country: Above market offering Benefit is provided by client Singapore My Company Market Prevalence Top Management Management Professional Staff Miscarriage due to an accident Maximum amount covered (SGD) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Surgical Implants Maximum amount covered (SGD) 2,000 6,250 2,000 6,250 2,000 5,000 2,000 5,000 Death Benefit Maximum amount covered (SGD) 5,000 5,000 5,000 5,000 utpatient Kidney Dialysis Maximum amount covered (SGD) 15,000 13,500 15,000 11,000 15,000 12,000 15,000 11,000 utpatient Cancer Treatment Maximum amount covered (SGD) 15,000 17,500 15,000 17,500 15,000 20,000 15,000 17,500 Erythropoietin & Cyclosporine Maximum amount covered (SGD) 10,000 10,000 10,000 10,000 Pre & Post Hospitalization Maximum amount covered (SGD) Lump sum limit for inpatient (SGD) Hospital Surgical Benefits 1,500 1,500 1,400 1,400 45,000 23,000 45,000 23,000 45,000 20,000 45,000 16,500 Hospital Surgical Benefits It is market practice to provide hospital surgical benefits to employees. The majority of the peer companies extend hospital surgical coverage to dependents mainly spouse and children. It is a prevalent practice for peer companies to insure this benefit. None of these companies require employees to pay for their own coverage. Co payment of hospital surgical expenses is not a common practice. If required, the co payment percentage is typically 20% of the claim amount for both employees and dependents. The provision of a Room & Board policy based on the class of ward is a prevalent practice among peer companies. 61% of companies provide employees and dependents a 1 bedded ward entitlement, with the remaining companies providing a 2 bedded, 4 bedded or 6 bedded entitlement. Pre existing conditions are typically covered after a one year waiting period. Note: Client's hospital surgical policy differs from the majority of peer companies. While client provides an as charged basis for expenses up to SGD 15,000 per disability, subjected to an overall limit for both private and government restructured hospitals, most peer companies generally adopt a hospital surgical policy where expenses incurred in a private hospital is charged up to the sub limits of each benefit item on a per disability basis. The overall limit would only be applicable if hospitalization is required in a Singapore government restructured hospital, whereby sub limits of each benefit item would not apply.

8 Country: Above market offering Benefit is provided by client Singapore My Company Market Prevalence Top Management Management Professional Staff % of companies providing major medical benefits % of companies providing major medical coverage to dependants verall Limit based on per policy year (SGD) verall Limit based on per disability (SGD) Major Medical Benefits % of companies with claim sharing arrangements Employee % of companies with claim sharing arrangements Dependent 50% 37% 2% 4% 33% 28% 40,000 70,000 40,000 70,000 40,000 70,000 40,000 60,000 63,333 63,333 63,333 56,667 Major Medical Benefits Half of the peer companies provide major medical benefits to employees, with more than half of these companies extending coverage to dependents. 37% of companies insure the benefit. The majority of these companies do not require employees to share the cost of premium. However, it is a common practice for companies providing major medical benefits to adopt a claim sharing arrangement. The co payment percentage is 20% for both employees and dependents. It is comparatively common among peer companies to provide an overall limit based on per policy year than per disability. 26% of companies with major medical coverage practice a deductible policy which is applied upon exhaustion of the hospitalization limit. Pre existing conditions are typically covered after a one year waiting period. Note: Client's major medical coverage per policy year is considerably lower than the market median across all employee levels. Client may consider revising the overall limit as per market median.

9 Country: Above market offering Benefit is provided by client Dental Benefits % of companies providing dental coverage to dependants % of companies with claim sharing arrangements Employee Annual limit of dental combined with other benefits Per dependent (SGD) Singapore % of companies providing dental benefits % of companies with claim sharing arrangements Dependent Annual limit of dental combined with other benefits Per employee (SGD) Annual limit of dental as a standalone benefit Per employee (SGD) Annual limit of dental as a standalone benefit Per dependent (SGD) My Company Market Prevalence Top Management Management Professional 85% 46% 2% 2% 4% 2% * * * * 1, , , , Dental Benefits The provision of dental benefits is a market practice. Slightly more than half of peer companies providing dental benefits extend this provision to dependents, commonly to both spouse and children. The benefit is generally self funded with only 24% of companies insuring the benefit. 20% of companies combine the annual limit for dental coverage with other outpatient benefits that could include outpatient clinical, specialist and vision benefits. For companies that do not have a combined limit, 50% of companies have an annual limit for dental benefit. It is not a common practice for companies to limit the number of visits a year or limit the claim amount per visit. Note: Client provides a substantially higher annual dental entitlement as compared to the market median. However, client may consider extending dental coverage to dependents in view that slightly more than half of peer companies providing dental benefits extend this provision to dependents. Staff

10 Above market offering Benefit is provided by client Country: Singapore Group Personal Accident Insurance % of companies providing personal accident insurance % of companies providing personal accident coverage to dependants % of companies providing Accidental Death coverage % of companies providing Total and Permanent Disability coverage % of companies providing Permanent Partial Disability coverage % of companies providing Temporary Total Disability coverage % of companies providing Accidental Medical Reimbursement % of companies providing Major Burns coverage Sum assured Flat amount (SGD) Sum assured Multiple of monthly salary (months) My Company Market Prevalence Top Management Management Professional 89% 9% 0% 2% 89% 89% 74% 37% 44% 46% 400, , , , Group Personal Accident Insurance Benefits It is market practice to provide group personal accident insurance to employees. Companies typically do not extend this benefit to dependents. The majority of companies insure the benefit, with all of these companies bearing the full cost of premiums for employees. Group personal accident coverage commonly includes accidental death, accidental total permanent disability, accidental partial permanent disability and major burns. The benefits level is commonly based on a multiple of an employee s monthly salary, with only 24% of companies insuring a flat amount. Note: The overall sum assured by client is consistently lower than the market median across all employee levels. client may consider increasing the sum assured as per market median. With slightly more than half of peer companies covering major burns under a Group Personal Accident policy, client may also consider adopting similar practices as well. Staff

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