What Employers Need to Know about their Role in Disability
Posted by Medavie Blue Cross on October 31, 2023
What Employers Need to Know about their Role in Disability
Posted by Medavie Blue Cross on October 31, 2023
Note: The following captures key takeaways from a recent Insights webinar on emerging strategies in disability management. During the presentation, we shared how Medavie Blue Cross is raising the industry bar by integrating our drug, health and disability data insights and investing in an industry-leading claims system to support case management, measurement and design and payment flexibility. Watch the recording to learn more about our program, as well as the data trends and public policy changes that are impacting benefit plans and the latest strategies in disability management.
Business Impact of Disability
At any given time, 8% to 12% of the workforce in Canada is off work due to injury and receiving workers’ compensation, long-term disability or weekly indemnity benefits.
- Nearly 1 in 4 plan sponsors participating in the 2023 Benefits Canada Healthcare Survey identified levels of absence and disability as major concerns.
Rising premium costs and lost time due to injury affect business owners’ bottom lines and their ability to compete in the marketplace.
- Studies show that the costs of losing an employee and retraining a successor equals up to five times the annual salary for a professional staff member and 120% of the annual salary for a non-professional staff member.
- Some 63% of Canadian companies say the labour shortage is hurting them, a situation that's estimated to cost Canada $39 billion in lost gross domestic product by 2030, according to Export Development Canada.
The longer individuals are away from work with a disability, the less likely they are to return to employment.
- Only 50% of employees on disability leave return to work if the leave lasts six months or longer. This drops to 20% after 12 months.
Mental Health Issues Growing
The prevalence of mental illness in the workplace is growing and having a profound impact.
- Mental health is the #1 driver of disability claims in Canada, accounting for approximately 30% of all short- and long-term disability claims and 70% of total disability costs, according to the Mental Health Commission of Canada.
- Mental health is also the leading cause of long-term and short-term disability claims managed by Medavie Blue Cross.
- Those living with chronic conditions are two times as likely to experience depression and anxiety than the general population, according to the Canadian Mental Health Association.
- Statistics Canada reported a 36% increase in employees with a mental health-related disability between 2019 and 2021.
Mental Health Issues Growing
The prevalence of mental illness in the workplace is growing and having a profound impact.
- Mental health is the #1 driver of disability claims in Canada, accounting for approximately 30% of all short- and long-term disability claims and 70% of total disability costs, according to the Mental Health Commission of Canada.
- Mental health is also the leading cause of long-term and short-term disability claims managed by Medavie Blue Cross.
- Those living with chronic conditions are two times as likely to experience depression and anxiety than the general population, according to the Canadian Mental Health Association.
- Statistics Canada reported a 36% increase in employees with a mental health-related disability between 2019 and 2021.
Importance of Early Intervention
Early integrated intervention solutions are key to successful health outcomes and technological innovations are opening up new opportunities to provide easier, faster access to expert mental health care.
- A combination of early psychiatric treatment and digital Cognitive Behavioural Therapy delivers results with claimants with a mental health diagnosis returning to health and work quickly and safely.
- Medavie Blue Cross has achieved a 20% reduction in short-term disability claims transitioning to long-term disability – our partnership stands out in the market by using Medaca’s services more intensively and earlier in the claim than other carriers.
- Where we manage both short- and long-term absences, we can intervene much earlier to get an employee assessed by a psychiatric specialist and on the path to recovery.
- Recognizing the positive impact of early intervention on our mental health claims, we are expanding this approach to include support for members with primary diagnoses related to musculoskeletal conditions.
Proactive, Integrated Management
Proactive, integrated disability management programs can help employers reduce their premiums and help get their employees back to work sooner.
- Medavie Blue Cross is Canada’s only integrated carrier with direct access to our clients’ Health, Pharmacy Benefits, and Disability claims data, supported by a market-leading claims system. This enables whole-health insights for our clients, which leads to improved communication and prioritization of case management.
- Through successful short-term disability partnerships, consistent communication, member engagement and coordination of services, we expedite diagnosis and treatment in the early stages of the claim to support a safe, timely recovery and return to work.
- Such a program can actually reduce the length of an injured employee’s absence, and our program has seen a 33% reduction in short-term disability claims transitioning to long-term disability.
- Over time, better insights and a more active case management strategy in partnership with employers and claimants lead to reduced disability duration and more sustainable pricing.
- On that note, we’ve held our average LTD renewal rate increase to 5% for our clients over the past 6 years.
Proactive, Integrated Management
Proactive, integrated disability management programs can help employers reduce their premiums and help get their employees back to work sooner.
- Medavie Blue Cross is Canada’s only integrated carrier with direct access to our clients’ Health, Pharmacy Benefits, and Disability claims data, supported by a market-leading claims system. This enables whole-health insights for our clients, which leads to improved communication and prioritization of case management.
- Through successful short-term disability partnerships, consistent communication, member engagement and coordination of services, we expedite diagnosis and treatment in the early stages of the claim to support a safe, timely recovery and return to work.
- Such a program can actually reduce the length of an injured employee’s absence, and our program has seen a 33% reduction in short-term disability claims transitioning to long-term disability.
- Over time, better insights and a more active case management strategy in partnership with employers and claimants lead to reduced disability duration and more sustainable pricing.
- On that note, we’ve held our average LTD renewal rate increase to 5% for our clients over the past 6 years.
The Role of Employers
As Canada’s working population ages, the rate of disability is likely to increase, compounded by sedentary lifestyles, reduced workforce, and more. Left unchecked, disability costs could increase dramatically, making it even more important that employers take steps now to limit those impacts. Having a short-term disability strategy with early intervention services is the first step.
- Effective disability management involves the employer working alongside the employee, medical professionals, and the Insurer to ensure the employee receives quality care early and facilitates a return to work.
- The most important intervention in terms of preventing and solving disability absence early on is the employer’s willingness to accommodate.
- "90% of return to work is actually a negotiation between the employee and the employer." Dr. Les Kertay, clinical psychologist and webinar presenter
- Clear and consistent communication is also essential in ensuring no surprises in accommodation and return-to-work planning.
- Employers should also know their organization’s disability data to understand their future risks and fine-tune their approach to prevention.
Taking these steps not only helps an employer prevent and mitigate the impact of disability leaves on their organization, but they also demonstrate to their employees that they value their health and safety.
Let’s Partner
Speak to your Medavie Blue Cross Representative or visit our website to learn how we can set you up for success with a robust, results-oriented program.
Sources:
Medavie Blue Cross Data
WorkSafe BC
Canadian Society of Professionals in Disability Management
Export Development Canada
Medavie Blue Cross is a premier all-in-one carrier that provides health, dental, travel, life and disability benefits and administers federal and provincial government-sponsored health programs. Together with Medavie Health Services, we are part of Medavie, a health solutions partner committed to improving the wellbeing of Canadians. We are in the...