Obesity drives up workers’ comp claims
Originally posted November 21, 2013 by Dan Cook on https://www.benefitspro.com
Obese employees make more workers’ comp claims, and they make costlier ones than non-obese employees.
That conclusion was drawn by Lockton Companies based on its review of several independent studies on employees with high health risks (including obesity, smoking, high blood pressure and limited physical activity) and workers’ comp claims.
The Kansas City, Mo., provider of risk management, insurance, and employee benefits consulting services cites three studies that, when taken together, paint a troubling picture, especially of the impact overweight workers can have on workers’ comp claims.
Lockton says that wellness programs, properly designed and implemented, can address this situation by helping obese workers lose weight. But Lockton doesn’t offer any stats on how effective wellness programs are overall in combating obesity.
Still, the studies cited offer food for thought.
The University of Michigan Health Management Research Center studied Xerox Corp. employees and confirmed that “employees with high health risks tended to have the highest workers’ compensation costs.”
Xerox was an early proponent of wellness plans. The UM followed employees for four years and reported that “workers’ compensation costs increased for those employees whose health risks were increasing or high already (e.g., smoking, physical inactivity, hypertension, high cholesterol, and life/job dissatisfaction).”
Lockton also refers to a 2010 study by the National Council on Compensation Insurance which more closely correlated obesity with workers’ comp claims.
The data “showed that workers’ compensation claims that included the obesity comorbidity diagnosis incurred significantly higher medical costs than comparable claims without the high health risk. NCCI also discovered that claims for employees identified
as “obese” almost tripled from 2000 to 2009 from 2.4 percent to 6.6 percent,” Lockton said.
Lockton then cites a more recent NCCI study testing whether “the lost-time duration of obese claimants is a multiple of non-obese claimants.”
It was.
“According to their findings, obese claimants incurred medical costs 6.8 times higher than non-obese (as defined by body mass index), were twice as likely to file a claim and an indemnity duration that averaged about 13 times higher,” Lockton summarized.
What Lockton suggests is that companies take the following steps to empower their wellness plans to really help employees address chronic health issues:
- Proactively engage HR and employee benefits to better understand the scope and breadth of existing corporate wellness initiatives, as well as how the organization is tracking the effectiveness of those programs.
- Determine how your insurer and/or third party administrator is capturing data on comorbid factors in workers’ compensation claim files and how that information can be incorporated into effective analytics.
- Collaborate with internal safety, health, and environment professionals (if applicable) to discover how best to integrate employee wellness with workplace safety.
“Effective corporate wellness initiatives have shown to be successful in not only reducing the duration of lost-time workers' compensation claims,” said Lockton's Michal Gnatek, author of the report, “but also in promoting healthy behaviors that potentially inhibit unsafe or inattentive workplace behavior.
“Risk managers and claims professionals should be adding employee wellness to the available arsenal of weapons to combat increasing claims.”
6 wellness tips for flu prevention
Originally posted on benefitnews.com
The flu costs businesses approximately $10.4 billion in direct costs for hospitalizations and out-patient visits for adults, according to the Centers for Disease Control and Prevention. In addition to encouraging workers to get immunized, employers can further minimize employee sick days and slow the spread of illness by communicating best practices in wellness and nutrition. Share these six preventive tips from Dr. Bruce Underwood, a certified nutrition and preventive care specialist with Healthy Futures, Inc., to keep workers and their families healthy this season.
No matter whether an individual decides to get immunized for influenza, primary prevention should be their priority for avoiding illness. Dr. Underwood explains that a good basis for our immune system is to get a good night’s sleep, generally between six to eight hours every night.
The surgeon general recommends all adults walk at least 10,000 steps or about 4 miles every day. If we over-exercise, then our immune system is weakened for a few days, explains Underwood. However, if we don't exercise at all our immune system is also weak.
As the following three slides prove, we need vitamins, minerals, amino acids, and fatty acids for our bodies to work well. Overall, Underwood recommends eating a wide variety of foods in amounts that allow you to maintain an ideal body weight.
One of the most important vitamins for immune health is vitamin C. The upper safe limit for Vitamin C is 2,000 mg for adults, according to the National Institute of Health. Underwood and other experts recommend 1,000 mg of the vitamin as a good daily dose. Dietary sources of the vitamin come mainly from fruits and vegetables, but can also be found in certain cuts of meat, especially liver. Studies have shown that our bodies expend Vitamin C to mitigate toxins such as cigarette smoke and pollution. The antioxidant has also helps relieve the physical and psychological effects of stress on people.
5. Zinc
The mineral Zinc is also necessary in stressful situations. By ingesting 10 to 40 milligrams of Zinc each day, individuals can also help build up their immune system. Underwood advises people to keep their daily dosage under 100 mg per day, however, as too much of the metal might cause fever, coughing, stomach pain, fatigue, and many other problems. Meats, seafood, dairy products, nuts, legumes, and whole grains offer relatively high levels of zinc.
Healthy employees create competitive advantage
Originally posted September 24, 2013 by Emily Holbrook on https://www.lifehealthpro.com
It may come as no surprise to many that healthier employees are more productive employees, creating a competitive advantage for their employer. That's according to a recent study by Integrated Benefits Institute (IBI), a workforce health and productivity research and measurement organization.
The company studied 1,268 employees at 53 organizations and found that employees that work at companies with a strong commitment to a healthy workforce "spend more time working, work more carefully and concentrate better than employees at other organizations," according to the report.
“If a workplace sets a high priority on the health of employees — who, in turn, are healthier and have better job performance — then it can reasonably be said that an employer’s culture gives it a competitive advantage. Workplace culture reflects the priorities of company leadership and is an area where employers have some leverage to improve business performance,” stated IBI research director Kimberly Jinnett, PhD, the main author of the report.
The study also found:
- Not careful at work: Workers in an organization with a weak health culture reported not being careful at work “all” or “most of the time” more than three times more frequently than those who work in organizations with a strong health culture.
- Not working as often: 44 percent more employees who work in an organization with a weak health culture reported not working as often as they should have “all” or “most of the time” as compared with employees in organizations with a strong health culture.
- Not concentrating: 31 percent more employees who work in companies with a weak health culture reported they did not concentrate “all” or “most of the time,” compared with employees in organizations with a strong health culture.
- Getting less work done: There was no difference in the responses from those in a strong versus a weak health culture with regard to getting less work done — but employee health is a differentiating factor. Emotional distress and overall health strongly influence how much an employee accomplishes, and employees in organizations with a weak health culture have worse outcomes on both measures.
IBI President Dr. Thomas Parry said "as more employers recognize that health influences productivity, as well as health care costs, health outcomes such as absence, disability and presenteeism are being brought into the larger discussion of the business cost of poor health."
Of course, this is not the first time that research has shown the connection between poor employer health culture and employee ailments (and therefore, productivity) and it won't be the last. According to IBI, employers that wish to increase their focus on health-related job performance and its impact on the bottom line "should broaden their view from the individual health of employees to additional organizational factors, including health culture and employee well-being."
Companies are, albeit slowly, starting to see the link between employee well-being and productivity.
Employers Stressing Health Incentives for Employees
Source: Insurance Journal and Aon Hewitt
U.S. employers are increasingly utilizing monetary and other incentives to encourage employees and their families to become active in health and fitness programs and take better care of themselves, according to new survey findings from Aon Hewitt.
Aon Hewitt’s survey of nearly 2,000 U.S. employers representing over 20 million U.S. employees and their dependents found that 84 percent now offer employees incentives for participating in a health risk questionnaire (HRQ) and almost two-thirds (64 percent) offer an incentive for participation in biometric screenings. Just over half (51 percent) provide incentives to employees who participate in health improvement and wellness programs.
The use of monetary incentives, in particular, has increased over the past year. In 2012, 59 percent of employers used monetary incentives to promote participation in wellness and health improvement programs, up from 37 percent in 2011. The use of monetary incentives for participating in disease/condition management programs almost tripled in 2012, from 17 percent in 2011 to 54 percent
A growing number of employers are beginning to link incentives to a result, as opposed to simply participating in a program. Of companies that offer incentives, 58 percent offer some form of incentive for completing lifestyle modification programs, such as quitting smoking or losing weight. About one-quarter offer incentives for progress or attainment made towards meeting acceptable ranges for biometric measures such as blood pressure, body mass index, blood sugar and cholesterol.
“Programs and tools like HRQs and biometric screenings can make employees more aware of their health status and of the opportunities to improve their health, but alone they won’t move the needle when it comes to health improvement and mitigating cost,” said Jim Winkler, chief innovation officer for Health & Benefits at Aon Hewitt. “Incentives solely tied to participation tend to become entitlement programs, with employees expecting to be rewarded without any sense of accountability for better health. To truly impact employee behavior change, more and more organizations realize they need to closely tie rewards to outcomes and better results rather than just enrollment.”
Employers also are requiring more of participants in order for them to be eligible for enhanced benefits, such as value-based insurance designs (VBID). Of the 46 percent of organizations that incorporate some type of VBID approach in their health plans, almost one in three require completion of a HRQ or require participation in a program such as disease management or smoking cessation programs to receive the enhanced benefits. This is a 33 percentage point increase from 2011, where nine out of 10 employers did not impose any requirements.
Despite the evidence of increased employer interest in tying incentives to results, Winkler said Aon Hewitt’s survey shows room for improvement. More than 80 percent of employers provide an incentive to complete a health questionnaire, yet less than 10 percent provide an incentive to address the results of the questionnaire. Additionally, more than 60 percent of employers provide an incentive to complete biometric screening, but less than 10 percent provide an incentive to take any action.
“Employers know that eight health behaviors, including risks such as lack of physical activity and failure to complete recommended preventive screenings, drive 15 chronic conditions that lead to higher medical costs and increased absence from work. An effective incentive strategy rewarding those who take action to improve their health is fundamental for improving health and reducing cost,” said Stephanie Pronk, clinical health improvement leader for Health & Benefits at Aon Hewitt.
Employers Fear Supporting Staff Return to Work
By Owain Thomas
Source: Workplace Savings and Benefits
A large majority of employers feel ill-equipped to help staff return to work after illness while a significant minority are calling for auto-enrolment into group risk schemes, new research finds.
The Aviva survey revealed that just one in five (20%) organizations felt equipped to offer their employees rehabilitation support following long-term illness.
Nearly a quarter (22%) said they do not have the resource or expertise to manage people back into the workplace effectively and a similar number (25%) worried that they would have to carry on paying sick pay.
The survey of 500 employers also highlighted confusion about new state benefits and fears that introducing measures to respond to this could adversely affect workers.
Nearly two-thirds of respondents (63%) admitted they did not know how much benefit is paid through Employment and Support Allowance while nearly three quarters (72%), didn't know that people in the work related activity group could find their entitlement to ESA could stop after a year.
Just one in ten (11%) employers had reviewed their sick-pay arrangements following the welfare reform changes.
When the situation was explained, over a third (38%) of employers felt it would be a good idea to have a different approach for different conditions.
However, a quarter (24%) recognized the potential impact this could have on their workforce, noting that they would worry that employees would be forced back into work when they are not well enough to do so.
One in five (22%) also felt that it would be very difficult to have the correct measures in place to decide whether a person is fit for work.
In response to these problems, a significant minority (43%) said they thought employees should be auto-enrolled onto a scheme that gives them financial protection in the event of long-term sickness absence.
And around one in five (17%) added that they were already considering taking out group income protection.
Aviva head of group risk Steve Bridger said: "There is a concerning lack of awareness amongst employers about the State benefits relating to illness or injury.
"However, we're encouraged to see that employers recognize the benefit of auto-enrolling employees onto a scheme that gives them financial protection if they are unable to work due to long-term illness and aids rehabilitation."
3 Simple Ways to Make People Happy at Work
By Margaret Heffernan
Source: inc.com
Learn these strategies to make your employees happy, and extravagantly execute them. You'll create a better business.
Most CEOs know that, if their workers are happy, they're also more productive. But how to make them happy is the challenge. Many take the goal too personally and try to build staff contentment through personal relationships. They get exhausted and find the strategy simply won't scale.
So what can you realistically pull off to make people happy at work?
Professional growth
People want to stretch, to develop their natural talents, feel their life has a narrative and is going somewhere. When they feel that they are growing, they may be exhausted but they're also inspired, energetic, and willing to take on a great deal. (That's one reason why investing in people can deliver a higher return that investing in new technology.) Anyone who reports to you (and anyone who reports to them) should have a professional development plan. That will keep everybody engaged, busy, and--eventually--happy.
Strong community
Everybody wants to be proud of where they work, to feel that they are investing the most precious thing they have--time--in something that matters. For some companies, the mission or the products are enough. If you make things that cure disease, create cleaner air, save carbon emissions, or improve life in any way, your business has an intrinsic sense of purpose which is probably what drew people to it in the first place. If you make ball bearings, knowledge-management software, light switches, or other kinds of widgets, you may find it tougher to demonstrate how you make the world a better place. Superficial social-responsibility projects won't fill this gap for you. You need to create direct links between the success of the business and the community you serve. These need to involve the entire work force and should be active, public, visible, and long lasting. Many companies get their staff to choose the causes or charities they support. The more they're engaged in these commitments, the more meaningful they will be to them--and your company community.
Fair treatment
"Everybody here is somebody." That's how one call-center rep once explained to me why he loved the company where he worked. The job wasn't thrilling, the pay wasn't great, but every single person was treated with love and respect. Just walking through the door, he said, made you glad to come to work. When people got sick, co-workers worried. When someone was due to retire, she most likely came back to work part time, just for the camaraderie. Sooner or later, everyone in a company like this talks about it as being like "family." The CEO knows everyone's name--even the names of everyone's kids and pets. This kind of fair--and kind--treatment also means startlingly low turnover rates, which also saves money. But it's not really about the money.
The very best companies I've studied and written about honor these principles and enact them lavishly. They don't pay lip service, and they don't do the bare minimum; they go overboard. Their CEOs do so because they know the secret of leadership: Look after the people, and the people look after the business.
OUTMATCHED
Fewer employers are offering a company match to their retirement benefits, a new study by the Society for Human Resource Management finds. About two-thirds of companies currently match their employees' contributions today, compared with 75 percent in 2008.
WORK/LIFE SURGE
Technology has spawned an increase in work/life balance among U.S. workers over the past three decades, according to a Workplace Options study. Forty-three percent of respondents said they've seen an increase in work/life benefits and access to professional development in their current job compared with their first-time job. Also, 28 percent said their current company has increased work/life benefits in the past five years despite the rough economy.
Why is Engaging Employees on Wellness so Hard?
by: Helen Box-Farnen
Source: eba.benefitnews.com
Employee engagement is the goal of just about every wellness and health management program. You need to engage employees to be more active, eat better, get more sleep. … You get the idea.
So why is engaging employees so hard? Maybe it’s because we haven’t really thought about it from the perspective of the employee – the end-user of the wellness initiative. According to research from a partnership of Aon Hewitt and The Futures Company, most people fall into discrete attitudinal segments that influence how they think and feel about wellness.
The folks in the C-Suite and most in leadership fall into a category that embraces a sense of control and responsibility when it comes to their health. And, they see wellness as part of the solution to important business problems: lowering costs and increasing productivity.
The average worker, on the other hand, has a completely different mindset. Here are a few of the attitudes that define nearly half of the U.S. population:
- Time-starved
- Seeks entertainment
- Family-oriented
- Stressed
- Likes high-tech media and social networking
- Interested in group activities and competition
- Wants to look and feel good
- Wants recognition for their accomplishments
- Trusts friends and family as information sources
In addition, while you might appreciate a lot of detail, the people you need to engage are not information-junkies. Try this approach with your clients and see if it doesn’t engage more of their workforce:
- Make it entertaining and create some buzz: To get employees’ attention, it needs to be fun, hip, humorous, and exciting.
- Appeal to what’s important to me: Tell employees how it will help them look good, feel good, and be more confident.
- Make it easy: Today’s workers are stressed and starved for time, so it needs to be simple and uncomplicated.
- Make me feel part of a community: Family and friends are important, and people like to feel connected to others.
Whether you are advising a client about products and services that will help them engage employees in wellness behaviors or you’re a benefits executive needing to achieve business objectives through improved health, wellness, and benefits consumerism, being successful might mean stepping outside of your own attitudes. Instead of approaching wellness as a way to solve the company’s issues – sell it to employees as a way to solve their issues. In other words, if you make it about them, you might just get what you need.
LEVEL WELLNESS
A recent survey by the Society of Human Resource Management found that 61 percent of companies are offering some sort of wellness initiative this year, up only slightly from 58 percent in 2008. Although wellness adoption by employers seems to have leveled off in the past few years, the elements of the programs have changed. For instance, 45 percent of polled employers said their program includes health and lifestyle coaching, compared with 33 percent in 2008.