As an employee, an extended absence from work may result in more than depleted sick time or vacation days. You may lose income, and it may not be result of your own illness. If you are a business owner or employer, you are also effected by the absences of your employees, whether or not you provide benefits.

Recently, researchers at the Commonwealth Fund have found that 33% of working-age adults are not working due to chronic health problems or disability. Another 46% are able to work, but miss work due to illness. At the same time, many employees in this group may not miss an entire day, but come to work and be less productive. Often this lack of productivity may be due to the illness of family members like children or elderly parents. Even when employees don’t have the paid time off or sick day options, they still take the time from work to see physicians or reduce stress.

Regardless of the potential wage losses, employees still find health of utmost importance, and may be forced to risk income (and company productivity) to maintain their wellbeing.

With that in mind, in spite of recent US Census figures demonstrating greater income coupled with lowered levels of insured employees, investment in quality health care may actually increase or improve productivity over time. By comparing the effects of basic and extensive employee health insurance coverage on those in the workforce with chronic health problems, the National Committee for Quality Assurance (NCQA) has demonstrated how health insurance coverage can reduce sick days taken by employees with specific chronic health conditions on a national level. Greater profitability can result through diminished sick day pay and employee work time that would have been lost to illness

By providing coverage that minimizes asthmatic episodes and ensures comprehensive diabetes care, the NCQA estimates $436 million in sick day wages could be saved. At the same time, over 2.3 million workers could receive preventative treatment for asthma and diabetes.

Preventative mental healthcare has also been found to result in savings. Workforce-wide coverage for depression medication management can result in 640,000 sick or unproductive days saved, or $110 million in wages.

Even the competing, pro-production option can be expensive; replacing employees with chronic illness still requires human resource expenditure. The current trend in diminished employee health coverage may actually be more costly overall.

In this way, comprehensive health insurance coverage for employees at simply an individual business level may prove not only cost-effective, but lucrative in the long-term.



References

National Committee for Quality Assurance. The Business Case for Health Care Quality

The Commonwealth Fund. Issue Brief: Health and Productivity Among U.S. Workers

Maureen McInaney. California labor market is strong, but workers in poor health don’t benefit, UCSF study reports.

Medical News Today. Health Care is a Priority When Low-Income Workers Choose Benefits.