Whether the economy and business conditions are strong or weak, employers in all industries pay close attention to labor costs.
Lost productivity from disabling injury or illness is a major cost driver; a Total Impact of Employee Absences survey found unscheduled disability absences account for around 8.7% of U.S. payrolls, compared with about 13.6% for health care costs.
According to a CIGNA Integration Value Study, employees with integrated medical and disability coverage spent fewer days on medical leave and away from work than those without integration.
For more detail on short-term benefits and how they affect absence and return-to-work timelines, see Understanding Short-Term Disability Insurance.
Study findings
- This group had a 20% lower absentee rate than employees with only disability coverage.
- When compared with employees without an integrated plan, this group had an 11% greater return-to-work rate.
- This group needed an average of 13 fewer days of short-term disability leave than employees without access to an integrated program.
Direct and indirect savings through medical and disability programs. Each day of disability for a business with average benefit offerings, an average hourly loaded wage of $29.71, and a 60% short-term disability benefit costs the business approximately $159.00.
A business with 5,000 medical- and disability-covered employees could see around 2,500 fewer disability days, producing productivity and direct cost savings of nearly $400,000.
Don't forget the value of chronic care. Illness and injury prevention continues during and after a disability absence because one medical condition can lead to others, and chronic care programs help limit that progression.
Research shows employees participating in chronic care programs were absent fewer days and had higher return-to-work rates after a disability than employees not participating in such programs; related resources are available at Transforming Health Benefits Programs.
In closing, reducing absentee-related costs is important to a company's financial health, and integrated medical and disability programs provide coordinated support to help employees return to work and stay healthy.
To review options for your organization, you can talk to an agent.
Frequently Asked Questions
What is an integrated medical and disability program?
An integrated program coordinates medical care and disability management so employees receive aligned treatment and return-to-work planning.
How do chronic care programs reduce disability time?
Chronic care programs offer coaching, support, and education that help manage conditions and prevent complications that extend disability leave.
What types of savings can employers expect from integration?
Employers may see fewer absent days, faster return-to-work rates, and lower direct and indirect productivity costs.
What should an employee do when facing a short-term disabling condition?
Employees should notify their employer, follow their plan’s medical guidance, and use available care coordination and chronic care resources to support recovery.