Ask an Adviser: Why integrate employee benefits with workers’ comp?

Welcome to Ask an Adviser, EBN’s new weekly column in which benefit brokers and advisers answer (anonymous) queries sent in by our readers. Looking for some expert advice? Please submit questions to askanadviser@arizent.com.

We asked Santiago Landazuri, an assistant VP and employee benefits consultant with USI Insurance Services, to weigh in on the following: What are the advantages of integrating the management of employee benefits and workers’ compensation?

Regardless of whether employees get injured on or off the job, it will affect both their health and job performance. Even minor pain can make an injured employee more susceptible to an on-the-job injury and possibly undermine the safety of co-workers. But by combining preventative care, wellness plans and chronic disease management with a thorough safety program, it will be easier to improve overall health.

Read more: Ask an Adviser: How do I shield employees from healthcare cost increases?

Encouraging employee enrollment in company-sponsored healthcare coverage and proper use of the plan will generate long-term benefits in the form of healthier employees who miss work or get injured less often, and return to their jobs more quickly if injured.

For example, the return-to-work time will be significantly longer for employees with unmanaged diabetes who get injured on the job than those whose diabetes is well-managed by their primary care physician. Employees with this chronic condition who haven’t enrolled in a company-sponsored health plan or only see their doctor in cases of emergency (or when they’re injured on the job) will cost more money over time.

When employers can take a more active role in promoting wellness, utilization of preventive care and their health insurance, they will see cost savings across both employee benefits and workers’ comp programs.

Read more: Ask an Adviser: When does it make sense to use an enrollment firm?

Ensuring that the appropriate insurance program is used to treat occupational or non-occupational injuries will result in greater financial stability. It will not only reduce workers’ comp medical and time-loss costs, but also minimize expenses associated with investigating an injury’s origin and possible legal costs associated with insurance fraud. Better documentation of an employee’s medical history through their PCP will provide more clarity throughout this process.

Employee health is crucial to the success of both the employee and company as a whole. Strong and integrated employee benefits and workers’ Compensation programs are the foundation of overall employee wellbeing and will improve retention, productivity and a company’s bottom line.