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- 1. The Healthy Employee:How Injury Prevention Reduces Company Healthcare Costs and Boosts Worker Productivity Kim Weiss of Remedy Interactive Karen English of Spring Consulting
- 2. Injury Prevention ShouldHave a Role in Wellness Programs • Injury prevention should be a critical component of an HR Manager’s high quality wellness program • The impact of injury prevention on healthcare costs and workforce productivity is substantial 2
- 3. Injury Prevention andWellness – Working Towards the Same Goals 3
- 4. Injury Prevention ProgramsDo What Wellness Does well·ness noun 1. the quality or state of being healthy in body and mind, especially as the result of deliberate effort. 2. an approach to healthcare that emphasizes preventing illness and prolonging life, as opposed to emphasizing treating diseases. Source: www.dictionary.com 4
- 5. Wellness Programs Existto Decrease the Cost of Many Employee Benefits 0 1000 2000 3000 4000 5000 6000 7000 EE GH STD LTD Incidental Absence FMLA AverageCostsPerFTE Full Costs by Program (2002 Benefits Data) Payments Lost Productivity Source: “The Business Case for Managing Health and Productivity: Results from IBI’s Full Cost Benchmarking Program”, June 2004 Costs are both direct (medical + indemnity) and indirect (productivity and absenteeism) 5
- 6. 71% 19% 10% Full Costs ofEmployee Benefits (2002 Benefits Data) Lost productivity from absence Employee WC and GH Medical Care Wage Replacement 0 1000 2000 3000 4000 5000 6000 7000 EE GH WC STD LTD Incidental Absence FMLA AverageCostsPerFTE Full Costs by Program (2002 Benefits Data) Payments Lost Productivity Source: “The Business Case for Managing Health and Productivity: Results from IBI’s Full Cost Benchmarking Program”, June 2004 Injury Prevention Programs Decrease WC Costs, But (Also) Employee Benefits Costs 6
- 7. Audience Question Have youexperienced back or neck pain in the last few weeks – Yes or No? 7
- 8. 8 Musculoskeletal Disorder (MSD)Injuries Are the Top Driver of Medical Costs 8 % of Claims % of Costs 1. Musculoskeletal & Related 21% 18% 2. Heart/Circulatory 13% 17% 3. Neoplasm/Cancer 9% 14% 4. Digestive-Related 7% 11% 5. Respiratory-Related 8% 7% Top Medical Drivers Source: Based on Medical Baseline and Disability Baseline studies presented by Cigna 8
- 9. Productivity Costs AreAlso Negatively Impacted By MSDs Musculoskeletal disorders (MSDs) such as repetitive strain injury (tendonitis, carpal tunnel syndrome, etc..) and back pain are one of the leading contributors of lost productivity and a rise in group heath, disability and workers’ compensation costs 187 million per year ... from MSD pain Lost Work Days 284 hours per year … from MSD pain Lost Productivity $61 billion Annual lost productivity costs for MSD-related pain for U.S. businesses (JAMA study) Source: “Lost Productive Time and Cost Due to Common Pain Conditions in the US Workforce,” The Journal of the American Medical Association, Nov 2003 9
- 10. Costs of TreatingMSDs Are Growing 800 700 600 500 400 300 200 100 900 $ billions 1996 2000 2004 2008 2012 510 361 719 Source: The Burden of Musculoskeletal Diseases in the United States: 2008 In 2004, companies spent $510 billion to treat musculoskeletal disorders – 41% more than 1996 - with $719 billion projected for 2012 10
- 11. MSDs Are BothOccupational and Non-Occupational MSD injury prevention programs are often managed by Safety 18% of medical costs are MSD- related Group Health 80% of claims are MSD-related Lower back injuries consume 33% of every WC dollar per year Workers’ Comp Managed by Health & Safety Managed by HR & Benefits 11
- 12. But Health &Safety and HR Don’t Always Work Together to Solve These Issues Workers’ Compensation Disability, Absence, Health & Productivity Management Work-related/occupational Not work-related/non-occupational Handled by Risk Management or Finance Handled by Human Resources or Benefits Coverage Type(s) State mandated – regulated by NCCI, NAIC Employer choice of benefit – regulated by ERISA Purchased by employer Purchased by employer and/or employee/individual Techniques, Management & Measurement Financing structures are advanced (i.e., retros, deductibles, self-insurance, captives) Financing structures more limited to insured versus self-insured Proactive claim management process, mostly due to the fact that the injury is work-related and employer is accountable for the cost Reactive claim management process – injury did not occur at the work place – employer may or may not be accountable for the cost Involves a workplace safety and therefore preventative component Focused on employee health and therefore wellness based 12
- 13. Audience Question If youhave a Safety Manager in your organization, do you work with them – Yes or No? 13
- 14. There Are TwoApproaches To Doing Injury Prevention Well Collaborate with Health & Safety Own ItOR Either way, you have more control over outcomes than wellness 14
- 15. Four Keys toSuccess In an Injury Prevention Program 1. Risk-Based Approach 2. Employee Engagement 3. Integration (where beneficial) 4. Measuring Impact 15
- 16. Identify Risk Risk-Based ApproachesEnsure Efficient Use of Resources • Survey and assess employees • Collect data from assessments • Leverage internal processes Mitigate Risk • Share assessment data with other stakeholders • Prioritize resources to reduce discomfort or risk of injury • Engage in training • Employees are given what they need to self-correct Discover New Insights • Analyze data for root causes of past workplace injuries • Review types of injuries sustained • Make program changes 16
- 17. Risk-Based Approaches (HowOne Company Does It) • Pinpoint the most common issues causing discomfort across the organization • Predict which actions will yield the greatest risk reduction 17
- 18. Risk-Based Approaches (HowAnother Company Does It) Prioritizing Employees Across the World Based on Risk The Solution: Determine relative risk levels; take action based on risk. Re-assess after 60 days to track completion of actions and their impact on risk. 18
- 19. Audience Question Do youthink your employees know what process they’re supposed to follow when they experience discomfort or pain – Yes or No? 19
- 20. 79% 70% 68% 65% 64% 63% 61% 58% Employee communications* Common casemanagement approaches for disability and one or more other benefits Return-to-work programs Integrated data or information/reporting for disability and one or more other benefits Early intervention activities Single source of intake Single resource that manages STD/FMLA* Collaboration across vendors, including referrals* Does your program include the following? Percentage that said “yes” Q37 Source: Spring Consulting Group, LLC, Integrated Disability/Absence/Health Management Employer Survey, 2009/2010; * indicates no trend data available Studies Show Employee Communication Is Key to Engagement 20
- 21. 73% 70% 63% 59% 55% 52% 50% 48% 39% 26% 13% 4% Consistent administration Better trackingor reporting Easier or better experience for employees Reduced costs Increased control Improved compliance Easier administration for the company Provides expertise Improved illness/absence outcomes Higher employee engagement Addresses presenteeism Other What have been the biggest advantages to your organization in implementing an integrated program?1 Q33 Highly-engaged employees miss 20 percent fewer days of work, and three- quarters of them exceeded or far exceeded expectations in their most recent performance review2 Sources: 1Spring Consulting Group, LLC, Integrated Disability/Absence/Health Management Employer Survey, 2009/2010 ; 2Watson Wyatt's 2008/2009 WorkUSA Report, Driving Business Results Through Continuous Engagement High Engagement Levels Are Achieved Through Integrated Programs Concern for employee well-being is a top factor considered for integration 21
- 22. Integration Means DifferentThings to Different People Health & Productivity Management “HPM” All IDM and TAM components plus… Links health, wellness/ prevention, disease, and behavioral management Allows for strategic planning and HR as business partner Total Absence Management “TAM” All IDM components plus… Expands to other time-off programs Supports workforce planning and budget activities “IDM” Disability, WC and FML as a baseline Single intake process Common case management and RTW Integrated Data Tracking Reporting Integrated Disability Management And the most common approach is phased – bringing Disability/WC together, and applying wellness across all programs 22
- 23. Measurement Is ImportantToo – Here Are Potential Savings to Measure How much savings/improvement have you been able to achieve in each goal area? Base: Have had integrated benefits for six months or more; Had each item as objective for integrated program n=69 Reduce lost time for disability or workers’ compensation n=71 Reduce direct costs of disability or workers’ compensation n=76 Increase return-to-work rates n=40 Reduce direct costs of group health n=70 Decrease overall absenteeism n=37 Increase advance scheduling of absences n=71 Increase employee satisfaction n=68 Improve employee productivity 12% 13% 11% 18% 11% 16% 6% 9% 12% 18% 13% 10% 11% 8% 7% 29% 21% 22% 5% 11% 8% 14% 9% 48% 48% 54% 68% 66% 68% 73% 81% 5% or less 6% to 10% 11% or more Don’t know/ Unable to measure Source: Spring Consulting Group, LLC, Integrated Disability/Absence/Health Management Employer Survey, 2009/2010 23
- 24. Key Issues Companyhad no Safety Manager Injuries were 90% MSD and repetitive stress-related A 1999 survey revealed employees had no resources, knowledge, or internal contact for health & safety There was no assessment after training to gauge injury prevention comprehension or ergonomics follow-through Company was spending $500K in direct medical costs + $1.5 million in Lost Time costs to treat MSDs Solution • Established an ergonomics program with goals and processes • Phase 1 – Identified functional management groups and internal leaders to create an employee-driven safety culture • Phase 2 – Issued a “comfort survey” to all employees and provided baseline ergonomics training to everyone; prioritized issues to solve based on workplace risks revealed in survey • Phase 3 – Followed through on ergonomic assessments annually • Phase 4 – Collected data re: workplace risks and root causes, measured employee progress, and adjusted what wasn’t working Results Significant reduction of MSDs and lost time costs from $2 million to $160K per year! Decreased risk of injury (from high risk to low risk) in 50% of employee population More productive employees and better engagement through smaller group efforts and awareness building Now integrating wellness and injury prevention programs to increase prevention mindset Case Study: Large Food/Chemical Products Company 24
- 25. Case Study: LargeTransportation Company Key Issues Lack of clear philosophy and process for absence/lost time cost Process for moving through absence and disease management program was disconnected and confusing to all parties Costs (group health, WC, STD/LTD), GL/MV/PD costs, and future cost trends were at business-threatening levels; significant risk of costly federal and state non- compliance penalties existed Common policies and procedures, comparable data and metrics, and financial measurement frameworks were not readily accessible Solutions • Established a long-term strategy, phased approach and multidisciplinary team • Phase 1 – Took time to prepare the organization, built an internal database for WC and Safety metrics and selected vendors for selected coverages • Phase 2 – Focused on WC and work related disability by improving the process, developing transitional work and onsite counselors • Phase 3 – Integrated WC, STD, LTD and Group Health benefits and started tracking the highest cost drivers • Phase 4 – Incorporated all human capital by focusing on health/disability prevention, population health management/wellness, total absence management Results Experienced 45% reduction in lost time claims & 40% reduction in lost days Improved employee engagement through increased call volumes (up 350%) and 400% improvement in program usage Documentation of workforce absence rate at 6.5% Reduction of certain leave incidence Referring > 10% calls a week to health coaches 25
- 26. Conclusion • By makinginjury prevention a critical component of your wellness program, you can: Significantly reduce direct and indirect healthcare costs Increase productivity across the organization Improve other organizational efficiencies • If it’s not possible to collaborate with health and safety, establish your own program • Optimal injury prevention programs are: risk-based, engage employees, integrate with other stakeholders, and measure impact You can do it! 26
- 27. Thank you! Kim Weiss RemedyInteractive [email protected] Karen English Spring Consulting [email protected]