As they continue to face rising employee health care costs, Wisconsin employers are shifting more of those costs onto their employees than their national counterparts, according to a new report.

Nationally, consumer driven health plans (CDHPs), which feature health reimbursement arrangements or health savings accounts, are now offered by 11.8 percent of employers, up from 5.8 percent last year.
However, in Wisconsin, 27.9 percent of the plans are now consumer driven, according to a new report by United Benefit Advisors (UBA), an alliance of 143 independent benefit advisory firms across the nation.

With an HSA plan, employees set money aside with tax-free deductions into the account. Employers also can contribute funds to that account. When health care is needed, employees pay high deductibles, often as much as $4,000 annually.

The average annual employer contribution for a single to an HRA or HSA was $1,071 nationally, while average employer contributions for a single to an HRA or HSA in Wisconsin was $1,143.

The vast majority of the increased adoption of CDHPs have come from employers with less than 1,000 employees, with the highest sub-segment being employers with less than 100 employees, according to the report.

Average employee health care premiums in Wisconsin continued to rise faster than the national average and the rate of inflation this year, according to the report.

Wisconsin premiums increased 7.4 percent, which was slightly above the national average of 7.2 percent, but below the state's rate of 10.3 percent last year, according to the report.

Diversified Insurance Services Inc. in Waukesha is the UBA affiliate in southeastern Wisconsin and participated in the survey.

The average annual health plan cost per employee is $6,881 nationally and $7,658 in Wisconsin.

Average monthly premiums for all plans were $347 for single coverage and $848 nationally and $354 and $927 in Wisconsin for a family.

Nationally, 32.7 percent of all plans required no employee contributions and 8.3 percent required no family contributions, while only 13.7 of Wisconsin plans required no employee contributions and only 7.5 percent required no family contributions.

The average employer contribution for a single to an HRA or HSA was $1,071 nationally, while average employer contributions for a single to an HRA or HSA was $1,143 in Wisconsin.

Diversified Insurance Services Inc., Waukesha, is the UBA affiliate in southeastern Wisconsin (www.div-ins.com).

The report included responses from 16,485 health plans sponsored by 11,723 employers nationwide who employ nearly 1.9 million people. The 2007 UBA Health Plan Survey is the nation's largest and most comprehensive survey of plan design and plan costs.

"The results will be especially valuable to employers in evaluating the effectiveness of their current plans and to knowledgeably make future adjustments while keeping their benefits both competitive and cost-effective," said James McCormack, chairman and chief executive officer of Diversified Insurance Services Inc.  

Other findings of the survey included:

• The median single PPO (preferred provider organization) deductible of $500 remained the same as 2006, as did the in-network and out-of-network co-insurance at 80 percent and 60 percent, respectively, and 90 percent and 60 percent, in Wisconsin.
• Both HMOs (health maintenance organizations) and CDHPs have approximately 10 percent lower annual costs per employee nationally than the average plan, while POS (point of service) plans have nearly 11 percent higher annual costs per employee nationally than the average plan. HMOs and CHDPs have approximately 7 percent lower annual costs per employee in Wisconsin than the average plan, while POS plans have nearly 6.5 percent higher annual costs per employee in Wisconsin than the average plan. 
• Nationally, 7.4 percent of all employers now offer comprehensive, non-insurance company-based wellness programs.
• Nationally, 74.9 percent of all prescription drug plans utilize three levels of co-pays, with median co-pays being $10/$25/$50. In Wisconsin, those numbers are 83.1 percent, with median co-pays being $10/$25/$50.
• Plan premiums increased approximately 0.6 percent more for employers with fewer than 25 employees than for all other employers.

"The intent of the survey is to provide not only large employers with effective plan benchmarks, but most importantly to provide the 98.8 percent of employer plan sponsors who have fewer than 1,000 employees with benchmarking data that is critical in managing their programs effectively. With an increasing number of employers having operations in multiple locations, a genuinely national survey of this size and scope is the most effective way to deliver that information," McCormack said.

For additional information about the survey, visit www.benefits.com.

Wisconsin Energy Corp. announced today that its subsidiary, Wisconsin Electric Power Co., doing business as We Energies, has completed the sale of its Point Beach Nuclear Plant to FPL Energy, a subsidiary of FPL Group Inc.
FPL Energy has assumed management and operation of Point Beach from Nuclear Management Company, which has operated the plant for We Energies since 2000.
Juno Beach, Fla.-based FPL Energy purchased the plant, its nuclear fuel and associated inventories for approximately $924 million. The final agreement reflects adjustments at closing and will also result in the release of decommissioning trust investments in excess of $482 million to We Energies. The transaction will result in more than $882 million of proceeds for the benefit of We Energies customers - approximately $57 million more than originally projected.
Point Beach is located near Two Rivers, Wis. The first unit at Point Beach entered into commercial service in 1970 and is licensed to operate until 2030. The second unit was brought on line in 1973 and is licensed to operate until 2033.
The sale includes a long-term agreement under which FPL Energy will sell 100 percent of the electrical output of Point Beach to We Energies through the current license term of each unit at the plant.
FPL Group Inc. operates nuclear plants in Florida, Iowa and New England.

Legislation drafted by U.S. Rep. Gwen Moore (D-Milwaukee) to spur economic development in low-income areas has been approved by the U.S. House of Representatives as a part of the Small Business Investment Expansion Act of 2007.
The bill, originally coming out of the Committee on Small Business on which the Congresswoman serves, was approved by a vote of 325 to 72.
"Great opportunities in economically distressed areas tend to be overlooked by traditional venture capital," Moore said. "This bill would ensure that hardworking entrepreneurs in low-income areas receive the investment they need to develop their business and create jobs."
Moore introduced the Securing Equity for the Economic Development of Low-Income Areas Act (SEED Act) in late March. This section of the bill would reauthorize and expand the New Markets Venture Capital Program (NMVC Program) that was created to make equity investments in small businesses located in economically distressed communities in urban and rural areas. This bill would provide $30 million in debenture guarantees and $5 million for operational assistance grants to fund the creation of a fresh round of NMVC companies.
The NMVC Program was established in 2000 and funds the creation of NMVC companies, which are regional venture capital firms that can leverage equity capital to invest in small businesses. Six such companies have been formed through the program and they have invested more than $48 million in 75 companies, all of which are based in low-income communities.
The program had not received funding in the last five fiscal years. Moore led recent efforts to restore the program's funding.
The legislation, H.R. 3567, will now be referred to the Senate.

In a new promotion, Milwaukee-based Miller Brewing Co.'s Icehouse beer is offering sports fans a chance to order personalized bobble head dolls.
Through the new Icehouse SuperFan promotion at www.icehouse.com, fans can upload their photograph and choose between a football, basketball or baseball uniform for their bobble head.
Hundreds of instant winners will receive their own personalized SuperFan bobble head by entering an in-pack code at Icehouse.com, where they'll also be entered to win the grand prize of a trip to any U.S. sporting event.
Fans must be of legal drinking age to participate. The cost for the customized bobble head is $55.
"Icehouse is the beer of choice for fans who like to get it goin' before cheering on their favorite team, so the SuperFan promotion is our way of honoring their passion and giving them a chance to become a part of the action," said Kim O'Malley, Icehouse senior associate brand manager. "Professional athletes have always credited fans for being a major part of their success, so SuperFans are definitely deserving of their own bobble head and a chance to win a trip to their dream sporting event."

Milwaukee building and construction firms have been opening offices in Madison in recent years to capitalize on the commercial construction boom in the capitol city. Meanwhile, commercial construction contracts have been in steep decline in Milwaukee this year. Read more in SBT's daily roundup of headlines from newspapers across the state at www.biztimes.com.

Milwaukee County Executive Scott Walker says his budget plan has the right priorities of safety, affordability and pride. He's the author of today's Milwaukee Biz Blog.

The BizTimes Stock Index dropped .72 points to close at 184.33 Friday, but local stocks began the new week with a strong rally this morning. The largest local gainers this morning were Johnson Controls Inc. (up $2.66 to $1.20.77) and Manpower Inc. (up $2.45 to $66.80). The largest local decliners this morning were Strattec Security Corp. (down $1.93 to $45.00) and Bucyrus International Inc. (down $1.28 to $71.65). The BizTimes Stock Index was created by Small Business Times and is monitored by North Shore Bank. The index, which measures the stock values of publicly held companies based in southeastern Wisconsin, is updated daily and can be viewed at www.biztimes.com.