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ARTICLE

Managing occupational health costs starts with prevention

Published: October 3, 2024

Person checking their blood pressure with a cuff

Chronic conditions like obesity, diabetes, and musculoskeletal injury pose a significant threat to occupational health, impacting employee well-being and employers’ bottom lines. Since nearly 40% of Americans have at least one chronic condition, costs to businesses will only continue to grow.1 By 2030, treatment of the 7 most common chronic conditions, coupled with productivity losses, will cost the U.S. economy $2 trillion annually.2

 

As health care costs rise, employers need to understand how taking proactive steps to promote employee health can help prevent workplace injuries and protect the health of their business.

person standing in front of a chart representing higher costs

Obesity drives costs and comorbidities

Nearly one-third of workers have obesity, which significantly impacts their daily lives and work — and for each of these employees, annual costs are $7,889 higher.3 As a result, the cumulative cost of obesity for employers is substantial. Obesity adds $31.1 billion in higher disability payments and $5.2 billion in higher workers’ compensation program costs for employers each year.4

 

Why does obesity drive such high occupational health care costs? According to Thomas Wang, MD, a Kaiser Permanente physician specializing in occupational medicine, obesity can lead to a greater risk of injuries and other health complications.

 

“Frequently there is a correlation between obesity and weaker muscles and lack of activity. When your muscles are weaker, you’re more prone to injury,” Dr. Wang explains. “Obesity also makes you more prone to develop conditions like diabetes, which will negatively impact your wound healing and recovery.”

person standing in front of a chart representing higher costs
blood glucose monitor
blood glucose monitor

Diabetes escalates spending 

Over 10% of people in the U.S. have diabetes.6 That prevalence translates to sizable annual costs for employers. Each employee with diabetes adds $10,968 to an employer’s yearly health care costs.7

 

While diabetes takes a financial toll on businesses, it can become a physical burden for employees. Diabetes can impair the body’s healing processes, which means employees are at greater risk for developing chronic wounds that could require more time away from work to heal.8 Sadly, those wounds can also prevent employees from enjoying life outside of work.

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Musculoskeletal conditions hamstring productivity

Musculoskeletal conditions affect more than half of U.S. adults.10 Accounting for nearly 15% of employers’ total medical costs, musculoskeletal conditions can drive up absenteeism and drive down productivity.11 Employees with musculoskeletal conditions miss an average of 14 workdays per year.12

 

According to Dr. Wang, employees with musculoskeletal conditions are more susceptible to injuries that have long-term consequences for their health and productivity.

 

“Once someone with a musculoskeletal condition sustains an injury, it's harder for them to recover. It also makes it harder for them to do their job,” he explains. “They’re in pain and won’t be able to do things as well. They’re just not as fast, as efficient, or as strong.”

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Person stretching on the floor in their living room
Person stretching on the floor in their living room

Low back and knee pain hurt your bottom line

At least 20% of workers who report low back pain miss more than a month of work each year.14 Employees with chronic low back pain can have costs as high as $7,112 in the first year after diagnosis.15

 

Knee pain affects nearly 50% of people and can result in 19 lost workdays per employee each year.16 And those who suffer from osteoarthritis (a common cause of knee pain) have an average of $7,707 added annual health care costs.17

 

Like other chronic conditions, low back and knee pain don’t just affect an employee’s ability to perform tasks at work — these conditions can also negatively impact employee mental health.

construction worker

Physical pain also affects employee mental health

Nearly half of people with chronic pain also have depression.18

 

Those mental and emotional health challenges can be doubly debilitating — affecting both an employee’s home life and work performance. Physical limitations can cause people to miss out on activities that bring them joy. And the depression that can ensue is likely to impact their focus and engagement at work.

 

Depression costs U.S. employers approximately $134 billion in health care costs (for both physical and mental health care), $20.9 billion in absenteeism, and $32.9 billion in lost productivity.19

 

And according to Dr. Wang, employees who’ve been injured at work may also experience residual anxiety even after they’ve recovered.

 

“If you got hurt doing something before, you’re going to be more hesitant, a little more nervous because you don't want to get hurt again,” he says. “You have to learn to trust yourself and realize you can perform at work without having that pain come back.”

construction worker

Occupational health strategies for employers

You can play a vital role in safeguarding your employees’ health and reducing their risk of an on-the-job injury.
 

Encourage healthy lifestyle choices outside of work

Your employees need to be healthy outside of work to stay healthy on the job. Encourage them to make time to eat healthy foods, add exercise to their daily routine, and look after their mental health. You might also consider creating a workforce well-being program to focus on any of these areas. And remember that preventive care helps find problems early — so promote the health benefits of routine physicals and preventive screenings to your employees.

 

Evaluate employee ergonomics and implement rest breaks

Consider hiring a specialist to optimize the ergonomics of your workplace, which may help prevent musculoskeletal injuries. You might also provide financial assistance for remote employees to set up ergonomic workstations and encourage employees who do more physical labor to follow ergonomic best practices.

 

Physically repetitive tasks can lead to musculoskeletal injury or make chronic conditions worse. Dr. Wang suggests employers offer breaks or modified work schedules for employees with physically demanding jobs.

 

“If your employee has to do something 20 times in an hour, it might not cause a problem,” he says. “But if they have to do that thing 20 times within 10 minutes, that’s going to make a difference. Employers need to consider the intensity and frequency of the tasks their employees perform.”

 

Nurse checking a person’s blood pressure with a cuff

Find a health care partner that focuses on employee total health

Nurse checking a person’s blood pressure with a cuff

You can decrease your occupational health spend by partnering with a health care partner that:

  • Prioritizes prevention — With high-quality primary care, health education, and timely screenings, your employees can avoid costly chronic conditions like obesity and diabetes.
  • Incorporates musculoskeletal care into a holistic, evidence-based, and personalized care plan — one that addresses comorbidities like obesity and diabetes, which might impact recovery.
  • Integrates your employees’ mental health into their overall care — so they’re better equipped to handle the physical, psychological, and emotional toll of recovering from workplace injuries or managing chronic conditions that affect their life and work.
  • Provides data on employee health — With the right information, you can better understand the health needs of your workforce and how you and your health care partner can work together to help employees avoid or manage chronic conditions.

Proactive occupational health strategies protect your business

When employers become advocates for employee health and safety, everyone wins. The investments you make in preventive care can not only help your employees bring their best to work each day — it can lead to lower health care costs down the line, for you and your team.  

GUIDE

Lower orthopedic expenses, elevate workforce health

Our easy-to-follow guide helps you empower employees to use existing benefits for muscle and joint pain, fostering a culture of proactive care.

Get the guide
Photo of Dr. Thomas Wang

About our expert

Thomas Wang, MD, Occupational Medicine

Dr. Thomas Wang has been a practicing physician in Occupational Medicine with Southern California Permanente Medical Group for the last 2 decades. In this role, he provides medical care for injured workers throughout San Diego. Administratively, he manages the physicians and clinics in San Diego as the chief of Occupational Medicine. He also serves as the regional chief for Occupational Medicine for Southern California and Hawaii and guides strategic direction and business implementation. Dr. Wang is also a physician ambassador for the Permanente Medical Group. In this role, he assists in providing perspective on medical matters in terms of impact on business operations. He also serves on the board of directors of the Asian Business Association in San Diego.

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Footnotes

  • 1Gabriel A. Benavidez, PhD, et al., “Chronic Disease Prevalence in the US: Sociodemographic and Geographic Variations by Zip Code Tabulation Area,” Preventing Chronic Disease: Public Health Research, Practice and Policy, February 2024.

  • 2David Hoffman, “Commentary on Chronic Disease Prevention in 2022,” National Association of Chronic Disease Directors,” accessed July 30, 2024.

  • 3Imani Telesford et al., “How have costs associated with obesity changed over time?”, Peterson-KFF Health System Tracker, March 24, 2023; “Assessing the Economic Impact of Obesity and Overweight on Employers: Identifying Paths Toward Work Force Health and Well-Being,” GlobalData, February 2024.

  • 4See note 3.

  • 5See note 3.

  • 6“National Diabetes Statistics Report,” CDC, May 15, 2024.

  • 7Jared Ortaliza et al., “How Do Health Expenditures Vary Across the Population?” Peterson-KFF Health System Tracker, November 2, 2021.

  • 8Nina Desari et al., “Updates in Diabetic Wound Healing, Inflammation, and Scarring,” Seminars in Plastic Surgery, 35(3), August 2021.

  • 9See note 7.

  • 10“Fast Facts: Musculoskeletal Conditions,” United States Bone and Joint Initiative, accessed June 10, 2024.  

  • 11“2022 Castlight Workforce Health Index,” Castlight, April 2022.

  • 12“Employer-Reported Workplace Injuries and Illnesses — 2021–2022,” U.S. Bureau of Labor Statistics, accessed June 10, 2024.

  • 13See note 12.

  • 14“Indirect Costs of Back Pain and MSDs,” Ohio State University, accessed June 11, 2024.

  • 15Elayna P. Kirsch et al., “Healthcare Resource Utilization for Chronic Low Back Pain Among High-Utilizers,” The Spine Journal, Volume 24, Issue 4, 2024, p. 601-616.

  • 16Corey W. Hunter et al., Consensus Guidelines on Interventional Therapies for Knee Pain (STEP Guidelines) from the American Society of Pain and Neuroscience,” Journal of Pain Research, September 8, 2022; “Work Injuries and Illnesses by Part of Body,” National Safety Council, accessed August 13, 2024.

  • 17Angela V. Bedenbaugh et al., “Real-World Health Care Resource Utilization and Costs Among US Patients with Knee Osteoarthritis Compared with Controls,” ClinicoEconomics and Outcomes Research, 2021.

  • 18Roha T. Meda et al., “Chronic Pain-Induced Depression: A Review of Prevalence and Management,” Cureus, 14(8), August 2022.

  • 19“The Cost of Depression,” Meadows Mental Health Policy Institute, accessed August 13, 2023.

  • 20See note 19.