Is it Time to Report Height and Weight on WC Claims?

Thursday, January 27, 2011 | 0

By Kory Wells
Zywave Inc.

A new report issued by the National Council on Compensation Insurance confirms anecdotal data that workers' compensation claims are generally much more costly for obese versus non-obese workers. As the title of the report, “How Obesity Increases the Risk of Disabling Workplace Injuries,” implies, that cost includes the significant likelihood that the claim of an obese worker will lead to permanent disability. In contrast, a similar claim by a non-obese worker will resolve more quickly and often remain a medical-only claim – which is not only less costly in and of itself , but also has a 70% reduced impact on the workers comp mod and premium.

The scales show...

Employers and professionals involved in all aspects of claims management are increasing their awareness of how the obesity trend is affecting U.S. productivity, our cost of doing business and even the availability of our workforce.

Comments posted in response to an Insurance Journal article on the subject confirm that this is a sensitive subject.  “Let’s look at all factors that increase medical costs,” one commenter says. I don’t think anyone would disagree that obesity is just one factor that can have a bearing on an injured worker’s recovery. For example, past studies by NCCI have evaluated how a worker’s age affects frequency and severity of claims. But as obesity around the world and particularly in the U.S. continues “unabated,” as the report says, this is an issue that deserves attention.

Blue States and Red States: A Very Disturbing Trend

No, I’m not talking politics… Centers for Disease Control graphics included in the NCCI report illustrate the obesity trend with stunning impact. In 1990, most of the U.S. is some shade of blue, indicating an obesity rate of 14% or less. In 1999, it’s about half blue and half gold, indicating an obesity rate of 24% or less. By 2009, all but Colorado and Washington, D.C., are some shade or orange or red, indicating an obesity rate exceeding 30%. View an interactive analysis of this trend on CDC's website (scroll down just a bit to see it – depending on your browser, you may need to press the “play” link or not).

Is It Time to Report Height and Weight on Workers Comp Claims?

As many of you are undoubtedly aware, it’s currently not customary to report a worker’s height and weight on a workers comp claim. For this study, researchers identified obese claims  based on obesity being listed as a secondary diagnosis. But the authors of the report go on to suggest that collecting height and weight data would be one way to better manage claims and control costs. WorkSafeBC in Canada is already doing this, the report mentions. This idea certainly correlates with injury management principles we advocate in 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.

Other Facts and Findings

The study found that primary cost drivers of both obese and non-obese claims included complex surgery, physical therapy and drugs and supplies, suggesting that treatment patterns and claims management can have an influence on these cases.

The report also suggests that insurers explore wellness initiatives (another component of WorkCompEdge) and incentives similar to the drug-free workplace credit.

As the report acknowledges, obesity is an issue that’s ultimately up to the individual. America’s obesity trends reflect complex challenges, many of which are beyond the scope of an incentive program. But this isn’t a challenge only for the medical community, or the business community, or the government, or the individual. It’s a challenge for all of us. For employers and the professionals involved in all aspects of claims management, increased awareness of how this issue is affecting our productivity, our cost of doing business and even the availability of our workforce – based on data in this report and others like it – is a positive step.

What do you think? Does your experience with claims that involve obese workers agree with this study? What do you think about collecting height and weight data on workers comp claims?

Kory Wells is product director of  broker analytics at Zywave Inc., and has been involved in different aspects of workers' compensation and experience rating analysis for over 15 years. She is editor of the WorkCompEge blog (http://www.workcompedgeblog.com), from which this article was reprinted with permission.