TY - JOUR
T1 - Employer disability management strategies and other predictors of injury claims rates and costs
T2 - Analysis of employment-based long-term disability insurance claims
AU - Salkever, David S.
AU - Shinogle, Judith A.
AU - Purushothaman, Mohankumar
N1 - Funding Information:
Financial support for this research was provided by UnumProvident and by Grant R49CCR302486 from the U.S. Centers for Disease Control to the Johns Hopkins Center for Injury Research and Policy. The authors are particularly indebted to Patricia Owens, Patricia Libby, and the staff of the Unum Disability Lab whose assistance greatly facilitated all aspects of our work. James Collins provided capable assistance in the literature search and manuscript preparation processes. Steve Mitchell and an anonymous referee provided helpful comments on an earlier version of this paper. The individual authors assume full responsibility for all opinions expressed here, and for any errors in analysis or interpretation.
PY - 2001
Y1 - 2001
N2 - Problem: Recent research indicates that many injuries to workers are not job related and that more than half of these injuries are not compensable under Workers' Compensation. Prior research on predictors or risk factors for these injuries, and the determinants of their costs, is quite limited. Method: This study analyzes data on more than 1000 injury-related paid claims for long-term disability (LTD) benefits by workers in 271 U.S. firms. Multiple regression analyses are used to examine predictors of LTD injury claims rates and determinants of LTD benefit payments per claim. Results: Although less than 20% of these injuries are work related, employer characteristics (industry type, selected disability management practices, and recent exposure to layoffs) are significant predictors of injury claims rates. Availability and/or generosity of other disability income sources, such as Workers' Compensation and Social Security Disability Insurance (SSDI), also impact on observed claims rates. Other strong predictors are the demographic and occupational mixes of employees. Cost per claim is also related to employer characteristics, employee characteristics, and the availability of other fringe benefits offered by the employer. Surprisingly, the level of benefits available under the employer's LTD policy does not have a detectable effect on claims rates. Impact on Industry: The importance of employer characteristics and policies, as predictors of claims rates and costs, suggests that occupational and nonoccupational injury risks may be strongly correlated. Programs to reduce the risks and costs of occupational injuries may also have important payoffs in terms of lower risks and costs for injuries to employees outside of the workplace.
AB - Problem: Recent research indicates that many injuries to workers are not job related and that more than half of these injuries are not compensable under Workers' Compensation. Prior research on predictors or risk factors for these injuries, and the determinants of their costs, is quite limited. Method: This study analyzes data on more than 1000 injury-related paid claims for long-term disability (LTD) benefits by workers in 271 U.S. firms. Multiple regression analyses are used to examine predictors of LTD injury claims rates and determinants of LTD benefit payments per claim. Results: Although less than 20% of these injuries are work related, employer characteristics (industry type, selected disability management practices, and recent exposure to layoffs) are significant predictors of injury claims rates. Availability and/or generosity of other disability income sources, such as Workers' Compensation and Social Security Disability Insurance (SSDI), also impact on observed claims rates. Other strong predictors are the demographic and occupational mixes of employees. Cost per claim is also related to employer characteristics, employee characteristics, and the availability of other fringe benefits offered by the employer. Surprisingly, the level of benefits available under the employer's LTD policy does not have a detectable effect on claims rates. Impact on Industry: The importance of employer characteristics and policies, as predictors of claims rates and costs, suggests that occupational and nonoccupational injury risks may be strongly correlated. Programs to reduce the risks and costs of occupational injuries may also have important payoffs in terms of lower risks and costs for injuries to employees outside of the workplace.
KW - Compensation
KW - Disability claims
KW - Disability management
KW - Injury costs
KW - Injury risks
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U2 - 10.1016/S0022-4375(01)00042-1
DO - 10.1016/S0022-4375(01)00042-1
M3 - Article
AN - SCOPUS:0034903723
SN - 0022-4375
VL - 32
SP - 157
EP - 185
JO - Journal of Safety Research
JF - Journal of Safety Research
IS - 2
ER -