|WHAT’S AT RISK|
Safety First
Keeping the Lid on Workers’ Compensation Costs
By Patricia Kagerer
As the number of obese people in the United States rises, so does the number of workers’ compensation claims as well as the cost of medical care. According to a study released by a major insurance carrier, the cost of the most
disabling workplace injuries and illnesses in 2008 amounted
to $53.42 billion in direct U.S. workers’ compensation costs,
averaging more than $1 billion dollars per week.
Overexertion, which includes injuries related to lifting, pushing, pulling, holding, carrying or throwing, maintained its
first place rank, costing businesses $13.4 billion in direct costs.
Consistent with past years, this event category accounted for
more than one- quarter of the overall national burden.
Impact of the Economy
The economic conditions of the world have taken the
American workforce on a stressful roller coaster ride for the
last three years. Analysts predicted that if we could all just
hold on until 2012 things would turn around. In the fall of
2011, the economic conditions in Europe doused the hopes
of resurgence in the American economy in 2012. The impact
of the global economy means that trouble in Europe means
trouble at home. Dimmed are the glimmers of hope for 2012,
replaced by predictions of more economic pressure, down
Americans who have a job, any job, are holding on tight to
the perceived security the job provides. The downsizing of
the economy over the last three years has left the American
workforce doing more with less, working more hours with
higher demands for productivity and efficiency. New roles
and responsibilities are mandated, yet they may not come
with training and development due to budget cuts. This
pressure cooker environment creates stress.
Stress produces anxiety in people. Many people turn to
eating, smoking and drinking to combat stress. Longer
working hours mean less time for sports and activities that
actually reduce stress. The proverbial rat race creates the
perfect storm for injuries and illnesses caused by stress and
unhealthy lifestyle choices.
With the current economic conditions, employers most
likely will see a rise in the cost and frequency of workers’
compensation claims. There is a myth that during a bad
economy the number of claims often decreases as employees
fear losing their jobs. However, the opposite can occur. Since
an employee cannot be terminated due to a work-related
injury, it is critical to note that an employee may view a
