About Wellness Corporate Solutions

Wednesday, January 19, 2011

Healthy Employees, Lower Premiums

We aren't the only ones saying it. Unhealthy employees are bad for business. Although there is considerable debate about using body mass index (BMI) as a factor to determine desirable candidates for insurance, an increasing number of employers realize that overweight employees are a financial disadvantage.

So, is it time to report height and weight on workers comp claims? This idea certainly correlates with injury management principles advocated by WorkCompEdge:
“It makes good sense that if you’re aware of a potential pitfall in a worker’s recovery process, you can make efforts to avoid that pitfall. Although it’s currently not customary to report a worker’s height and weight on a workers comp claim, research suggests that collecting this data would be one way to better manage claims and control costs.”
Workers compensation covers the cost of medical claims and disability claims for workers who are injured while on the job. Mounting evidence shows that when an obese person makes a claim, they are more likely to have long-lasting injuries or become unable to return to work. As a result, the insurance company pays out more compensation to the injured employee, and the employer's insurance premiums may rise. Past studies by NCCI have evaluated how a worker’s age can affect the frequency and severity of claims. Now, as obesity becomes an increasingly prevalent global issue, this has become a topic that deserves attention.

If the data accurately indicates that employees with higher BMI’s are more likely to sustain long lasting injuries (and reap the insurance rewards) compared with lower weight employees, then employers who have a low percentage of obese employees can document this and negotiate lower workers comp insurance rates for their healthy workforce. This is one more reason to make comprehensive, preventative wellness programs a priority among employers. In the long run, healthy employees are less likely to be a financial burden on a company.

4 comments:

Insurance Information UK said...

i agree with you health employees and lower premium it is true

Anonymous said...

I believe that waist circumference is a better measure, particularly for men.

Certain men with high muscle mass may show up with high BMI but have acceptable waist circumference.

health insurance said...

I believe that there are still a lot of people who still need to give priority to their health, no matter where they live or where they come from. There is a certain security that you feel when you have health insurance, or even just a simple knowledge on your rights, health-wise.

Chris from medicalaidsite.co.za said...

Certainly, healthier employers cost less when in comes to health insurance. This also means less absenteeism and more productivity for your business.