nsp 10 year benefits trend

INSPERITY (NYSE:NSP) 10 YEAR BENEFITS TREND 2005 – 2014 ANNUAL REPORTS

2014 Annual Report, Page 37: 2.4%

Benefit costs - The cost of group health insurance and related employee benefits increased $12 per worksite employee

per month, or 2.4%, on a per covered employee basis compared to 2013. The percentage of worksite employees covered

under our health insurance plan was 71.7% in 2014 and 72.1% in 2013. Please read “—Critical Accounting Policies and

Estimates – Benefits Cost” for a discussion of our accounting for health insurance costs.


Benefit costs - The cost of group health insurance and related employee benefits increased $29 per worksite employee

per month, or 4.7%, on a per covered employee basis compared to 2012. The percentage of worksite employees covered

under our health insurance plan was 72.1% in both 2013 and 2012. Please read “—Critical Accounting Policies and

Estimates – Benefits Costs” for a discussion of our accounting for health insurance costs.


Benefits costs – The cost of group health insurance and related employee benefits increased $8 per worksite employees

per month, or 3.5%, on a per covered employee basis compared to 2011. The percentage worksite employees covered

under our health insurance plan was 72.1% in 2012 versus 73.7% in 2011. Please read “—Critical Accounting Policies

and Estimates – Benefits Costs” for a discussion of our accounting for health insurance costs.


Benefit costs – The cost of group health insurance and related employee benefits increased $23 per worksite employee

per month, or 4.8%, on a per covered employee basis compared to 2010. These results were favorably impacted by a

decrease in the number of COBRA participants. The number of participants electing COBRA coverage in the United

plan declined by 5.5% in the fourth quarter of 2010 to 3.2% in the fourth quarter of 2011, due primarily to the August

2011 expiration of the 65% federal premium subsidy provided to COBRA eligible participants in the ARRA.

Historically, the net costs of COBRA claims per enrollee are approximately double the cost of claims associated with

active enrollees. The percentage of worksite employees covered under our health insurance plan was 73.7% in 2011

versus 74.3% in 2010. Please read “—Critical Accounting Policies and Estimates – Benefits Costs” for a discussion of

our accounting for health insurance costs.



per month, or 6.0%, on a per covered employee basis compared to 2009. This increase was due to expected medical cost

increases, as well as higher claims associated with increased COBRA participation resulting from the severe economic

environment and the American Recovery and Reinvestment Act of 2009, as amended (“ARRA”). ARRA provided a

federal subsidy for COBRA premiums and extended the election period for certain terminated employees. The net costs

of claims per COBRA enrollee are approximately double the cost of claims associated with active enrollees. The

number of individuals electing COBRA coverage has declined from 7.2% in the fourth quarter of 2009 to 5.5% in the

fourth quarter of 2010. The percentage of worksite employees covered under our health insurance plan was 74.3% in

2010 versus 74.8% in 2009. Please read “—Critical Accounting Policies and Estimates – Benefits Costs” on page 31

for a discussion of our accounting for health insurance costs.



per month, or 8.6% on a per covered employee basis compared to 2008. This increase was due to increased utilization

by active participants, as well as higher claims associated with increased COBRA participation resulting from the severe

economic environment and the enactment of the ARRA. The net costs COBRA claims per enrollee are approximately

double the cost of claims associated with active enrollees. In addition, the numbered individuals electing COBRA

coverage has increased from 3.8% of participants in the United Plan in the second quarter of 2008 to 7.2E% in the fourth

quarter of 2009. Please read “Factors That May Affect Future Results and the Market Price of Common Stock” on page

38 for a discussion of ARRA. The percentage of worksite employees covered under our health insurance plan was

74.8% in 2009 versus 73.5% in 2008. Please read “—Critical Accounting Policies and Estimates – Benefits Costs” on

page 25 for a discussion of our accounting for health insurance costs.



per month, or 2.5% on a per covered employee basis, compared to 2007. The 2008 benefits costs reflect the impact of

costs saving associated with plan design changes implemented on January 1, 2008. The percentage of worksite

employees covered under our health insurance plan was 73.5% in 2008 versus 73.2% in 2007. Please read “—Critical

Accounting Policies and Estimates – Benefits Costs” on page 25 for a discussion of our accounting for health insurance

costs.



per month, or 8.3% on a per covered employee basis compared to 2006. The percentage of worksite employees covered

under our health insurance plan was 73.2% versus 72.7% in 2006. Please read “—Critical Accounting Policies and

Estimates – Benefits Costs” on page 25 for a discussion of our accounting for health insurance costs.



per month to $453 compared to 2005. The increase is due to a 5.7% increase in the cost per covered employee and a

slight increase in the percentage of worksite employees covered under our health insurance plan to 72.7% in 2005 versus

72.4% in 2005. . Please read “—Critical Accounting Policies and Estimates – Benefits Costs” on page 24 for a

discussion of our accounting for health insurance costs.



per month to $427 compared to 2004. The increase is due to a 3.9% increase in the cost per covered employee and an

increase in the percentage of worksite employees covered under our health insurance plan to 72.4% in 2005 versus

71.1% in 2004. Please read “—Critical Accounting Policies and Estimates – Benefits Costs” on page 24 for a discussion

of our accounting for health insurance costs.

nsp 10 year benefits trend

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