Managing the cost of absence: as the cost of medical and disability programs continues to rise, employers are seeking ways to reign in expenses and keep employees as productive as possible. An effective disability management program can provide the keys to success

Risk & Insurance,  August, 2003  by Mindy W. Toran

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A formal return-to-work program should have fairly detailed functional job descriptions for all different levels of employment. "Think about how you can modify a person's job for various kinds of disabilities," says VanDam. "Having defined job descriptions can help medical care providers and claims administrators understand the injured worker's job and assign a realistic return-to-work date."

If an employer cannot offer modified or transitional jobs within their workplace, there are other options to keep employees productive and eventually return them to work. Workers' Transition Network of Deerfield, Ill., a member of the LewisCo Group, offers an Interim Employment Services (IES) program designed to place temporarily injured workers in an interim job at a non-profit agency. The program keeps injured workers active during their recovery, maintaining and supporting their early return to normal duties.

"This is an optimal solution for employers that cannot provide or have difficulty providing modified job accommodations for injured or disabled workers," says Jim Kremer, vice president of Workers' Transition Network. "The IES program identifies a position for employees, within their work restrictions, at a local nonprofit agency approved by their treating physician. Employees maintain their selfesteem and return to work more quickly, and in better physical and mental condition because of the continued work environment activity during the recovery period. The best place for an injured worker to be is in the workplace, doing meaningful work," he stresses.

Integrating Programs

Many employers are exploring the potential value of expanding their disability management programs beyond STD and LTD to bring the same level of cost management and employee satisfaction to workers' comp and FMLA--Family & Medical Leave Absences.

Wendy Manners, assistant vice president, integrated benefits, at The Hartford's Specialty Risk Services division in Hartford, Conn., notes that integrated disability management helps improve productivity and reduces the cost of absence.

"It makes sense to coordinate family and medical leave absences alongside workers' comp and short- and long-term disability because it provides a clearer way for companies to manage all workplace absence. The focus should be on how to effectively bring employees back to health and productivity, no matter why they're out of work. The key is to bring all absences under one umbrella for ease of administration and good management," she stresses.

Measurement & Reporting

"Ongoing measurement and reporting of your disability management program is critical to determine whether the plan is achieving your objectives and goals and identify necessary refinements," says Maloney of Liberty Mutual.

Programs like Liberty's InfoSource, a secure Intranet site that provides the insurer's disability clients with online access to the information needed to effectively manage group disability, group life and FMLA plans, can provide instant access to claims data and outcomes.