Obesity linked to costly workers’ compensation claims

03/26/09

Earlier this month, the National Council on Compensation Insurance (NCCI) released preliminary survey data that strongly suggests there is a direct correlation between obesity and workers’ compensation claims.

The NCCI data shows that workers’ compensation medical claims involving obese claimants that are open for one year can be up to three times more expensive than those involving healthier employees.

As claims remain open, the cost increases with time. Workers’ comp claims that remain open for five years can be five times as costly and the extra treatments related to obesity involved in some “smaller claims” can exceed almost 30 times the cost of treating a non-obese individual, according to NCCI.

“As the claims industry (and employers) begin analysis of their data and adverse claims, they are beginning to realize that you can’t ignore (issues) that historically have been ignored,” including obesity, said Tammy Bradly, director of case management product development for Intracorp in Birmingham, Ala.

The collection of workers’ compensation data on obesity has been hindered by a variety of factors. In the past, the industry was focused on treating injured body parts and overlooked how obesity played a role in increased claim duration and cost. The stigma associated with obesity and a fear of committing privacy violations has also slowed research in the area.

Industry observers say the trend is changing. Workers’ comp nurse case managers have started to incorporate an injured employee’s obesity into the factors of a case. Nurses are also looking for resources to help employees address the problem, especially when it directly affects the time it takes for employees to return to work.

Studies have shown that along with obesity, the heath care costs associated with employees who smoke and with conditions such as diabetes and high blood pressure can be significantly higher than healthy employees.

Employers can take a comprehensive approach to combating both rising health care costs and more expensive workers’ comp claims by promoting the importance of employee wellness and workplace safety.

As the economy continues to challenge businesses, more are searching for inexpensive safety training methods to save money and limit the number of workplace injuries that can lead to costly workers’ compensation claims.

G.Neil is meeting that challenge with new products that make employee safety training and OSHA compliance easier and affordable. With the right tools, it’s possible to keep workers safe and healthy without jeopardizing your budget.