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Foundation Insurance Group
803 West Broad Street
Suite 500
Falls Church, VA 22046
703-988-3750 (phone)
800-203-2811 (toll free)
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3 Strategies for Cutting Way Down on Obesity-Related Workers' Comp Claims
It may seem like Americans are getting fatter by the year. In fact, we're not. That's the good news.
The not so good news is that while the rate of obesity has not risen in over a decade, it stands at 35%, giving the US the dubious distinction of being the most overweight country in the world.
Obesity, a medical problem in its own right, often presents with comorbid, or co-occurring, weight-related disorders like type II diabetes, heart disease, hypertension, stroke, osteoarthritis, and so on.
Very overweight people are more susceptible to certain injuries, as well, ranging from back and wrist problems to knees that require replacing. And when they do file workers' comp claims, the costs are often higher.
They may take longer to recover, are more likely to become permanently disabled than their healthy-weight counterparts, and often require more expensive treatment options and equipment.
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| The CDC has noted that participants in workplace wellness programs have 25% - 30% lower medical and absenteeism costs than nonparticipants, and that every dollar spent on a wellness program provides a $3.27 ROI in reduced medical costs. |
According to Reuters, that equipment, like a wheelchair suitable for a person weighing 500 pounds costs $1,056 - as much as ten times the cost of an average wheelchair. When it comes to medication, doses and costs are also amplified. A 130-pound claimant requires a $590 dosage of the antibiotic Cubicin, while someone weighing 350 pounds needs $1,600 worth.
You don't have to be severely obese for your weight to become problematic. Weight-exacerbated conditions start to really increase at about 250 pounds. It's no coincidence that most life insurance companies put people weighing over 235 in a different risk category. (The metric used depends on the company-some go by poundage, some by body mass index.)
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| | Dalip Singh, defying body mass index charts |
Of course, weight is relative to height and muscle mass. Weightlifter, pro wrestler, and former Mr. India Dalip Singh, better known as The Great Khali, tips the scales at a mighty 347 pounds. Going by body mass index charts, that makes him obese. But anyone who's seen the 7' 1" behemoth in action knows that he doesn't need to go on a diet.
Here are three recommendations for employers who want to avoid obesity-related work comp claims.
- Prevent common injuries -- Since obese people are at greater risk for many injuries caused by falling or lifting, establishing effective safety training programs can make a big difference in the number of claims filed.
- Keep an eye on the numbers, both on and off the scale -- Since we know that 35% of the general population is overweight, and that this segment is at greater risk for more severe injuries, it makes sense to review accident data, and reassign those higher-risk folks to safer operational areas and activities.
- Implement wellness programs -- Wellness programs run the gamut from providing financial incentives for weight loss, to offering free or subsidized gym memberships, to scheduling some time in your employees' days for healthy physical activity. The CDC has noted that participants in workplace wellness programs have 25% - 30% lower medical and absenteeism costs than nonparticipants, and that every dollar spent on a wellness program provides a $3.27 ROI in reduced medical costs. Their Worksite Health Scorecard can give you a good picture of what your workplace's strengths and weaknesses are.
There are a lot of great wellness initiatives companies can implement at many different price points and it doesn't take a big investment to offer programs that will decrease accidents, injuries and claims and ultimately lead to lowering workers comp costs.
- Offering educational pamphlets
- Providing healthier foods in vending machines and cafeterias
- Doing a risk assessment and raising employee awareness
- Providing referrals for resources like nutritionists and smoking cessation programs
With some investment in time and training, you can cut down on obesity-related workers' comp costs considerably. Since a third of your workforce, on average, has a weight problem, the only thing you've got to lose is a few pounds.
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Hire Them Young: The New Age of Apprentices
It's back-to-school season again, and millions of teens and twenty-somethings are heading off or returning to high schools and colleges across the country. But it's not all grassy quads. Plenty of young adults aren't in school. For those who are, they face about $31 thousand in debt as they enter a difficult job market where they can expect to make only about $45 thousand a year. However, as part of the 100,000 Opportunities Initiative, a growing number are going directly into jobs at companies that recognize the importance - and benefits - of hiring young people.
In the initiative, spearheaded by Starbucks, 29 major U.S. companies have taken up the challenge to curb youth unemployment - now at 18.1 percent for workers 16 to 18, compared to 5.3 percent for the entire work force.
JCPenney, JPMorgan Chase, Hilton, Target, CVS, Microsoft, and the other participating companies are helping the economy, and helping thousands of young people.
The companies also get plenty out of the arrangement: by hiring young people for jobs which don't require a college degree, they're training future skilled employees who will rise through the ranks, and hopefully into the middle class, all without a single cent in college debt.
The apprenticeship approach to employment is nothing new, but vocational education and youth employment have become increasingly rare in the U.S., where a college degree is now seen as essential for success - regardless of whether a college education is really relevant to the kind of work involved. Meanwhile, Germany has over ten times more apprentices working at their companies than in the U.S. - and, not surprisingly, half the youth unemployment rate.
Now, American companies are catching on, creating vocational schools and training programs to help build their own workers. For example, at the Apprentice School, which is owned by the military contractor Huntington Ingalls Industries and serves the nearby naval shipyard, students don't have debt: all expenses are paid, and by their last year they can expect a $54 thousand salary.
Although the decline in vocational education and apprenticeships has gone hand-in-hand with a decline in manufacturing jobs like the ones for these shipbuilders - accepting 230 out of 4000 applicants a year, the Apprentice School has admission rates comparable to Harvard.
Companies from Alaska Airlines to Taco Bell to Walgreens have finally caught on. Now, with the new 100,000 Opportunities Initiative, they're making a concerted push to decrease youth unemployment, and put thousands of young people on professional tracks. At these companies, there's plenty of room for advancement without a college degree: the education is in the experience.
As we enter a new age of apprenticeship, it seems more companies will follow this lead, creating an effective, mutually beneficial system for vocational education and job training. Could your organization benefit from adopting a similar approach?
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The Value of an Umbrella Policy for your Business
We don't really like to think about it, but sometimes the cost of an accident (especially if your business is liable) can exceed the limits of your insurance policy. That's where umbrella coverage kicks in.
For example, what if your restaurant serves a bad oyster to a wealthy celebrity, who then sues you for the income she would have earned if she weren't sick? What if your factory catches fire, not only destroying your inventory but also seriously injuring a dozen employees? You could be found liable for millions of dollars, well beyond what your normal liability policies can cover. If you have an umbrella insurance policy, this is when it would kick in.
Umbrella insurance is a way to add a great deal of extra coverage on top of existing liability policies, without breaking the bank. If your normal policies cover you up to a million dollars, and your liability exceeds it, your umbrella policy kicks in to take care of the rest-and a few hundred extra dollars a month to pay for the umbrella will suddenly turn into hundreds of thousands of dollars in additional coverage.
Umbrella coverage doesn't just increase your overall payout. It can also cover a broader range of risks not included in the underlying policy, and "drop down" to fill the gaps.
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All content © 2015 Professional Marketing Associates, Inc. This newsletter is not intended to provide specific legal or insurance advice. Please consult your individual agent for further information on the topics covered.
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