Canadian HR Reporter - Sample Issue

By Brad Fedorchuk O ver the past decade, long-term disability (LTD) claim incidence, duration and costs have risen dramatically year over year. Industry statistics show these trends are driven by various factors including an increase in mental health-related claims and an ag- ing population. Employers know LTD coverage provides valuable fi nancial protection to employees and can be a critical means of recruiting and retaining talent. However, many em- ployers feel the ability to off er coverage is being steadily eroded by factors beyond their control. What is within employers' control is to seek greater support from group insurance providers. is can include looking for specifi c best practices for managing LTD claims and prevention and early interven- tion strategies. ese can help limit the ex- posure to rising claims costs and provide additional benefi ts to employees. Disability trends and the aging workforce Employee populations are getting older, on average, paralleling broader demographic changes: ere are, for the fi rst time, more Canadians who are 64 and older than un- der the age of 15, according to a 2016 Sta- tistics Canada census report. e impact of age on the number of disability claims is dramatic. For example, the odds of an employee who is 52 years old becoming disabled are 15.8 in 1,000 — more than double the inci- dence of disability for an employee who is 32 (6.9 in 1,000), according to Great-West Life data. is is because the occurrence of certain diagnoses such as musculoskeletal, cancer, nervous system and sensory organ disor- ders rises signifi cantly with age. Looking at cancer alone, a disability caused by cancer is four times more likely for a 62-year-old than a 42-year-old. Claims duration is also aff ected by age: e average claim for a plan member dis- abled between ages 40 and 49 is about twice as long as for someone who is dis- abled before age 30, according to Great- West Life. For employers, these age-related num- bers translate into higher costs. Moreover, World Health Organization studies on health and lifestyle suggest the combination of demographic trends and more sedentary habits can have a huge impact on health trends, disability and productivity. Wellness begins with prevention Great-West Life's experience shows that employers that integrate wellness initiatives and resources across the organization can expect to have happier and more produc- tive employees. It begins with recognizing the role an employer can play in keeping employees healthy (both physically and psychologically) and responding to health risks as they emerge. Be proactive: Many age-related diseases and conditions are controllable, so the time to act is before a disability occurs. Choles- terol disorders, high blood pressure and some forms of diabetes can often be man- aged through informed choices about diet and exercise. Employers can support employees by providing tools and resources to increase their knowledge and motivate positive deci- sions and actions. Be responsive: Employers can learn to recognize the health risks that exist at their organizations and target wellness programs to address those risks. Provid- ers can help identify risks through benefi t plan trend reports and health-risk assess- ment campaigns. Intervene early to minimize absence Employers also need policies and processes to help ensure employees who are dealing with health issues are able to remain pro- ductive at work as long as possible. Most employers recognize the duty to accom- modate but may struggle with making it happen consistently. Employers can look to providers to help navigate the duty to accommodate and be creative in identifying alternate work op- portunities for employees with short- or long-term health issues. When done well, this approach can help an employee remain a productive member of the work team much longer, and can even help prevent a disability claim. Providers can play an active role in help- ing employers develop creative accom- modation plans that maximize the skill set of an employee who may be dealing with a chronic functional limitation but can still make a valuable contribution to the workplace. Customized support Once an employee is off work due to ill- ness or disability, the employer's objective should shift to maintaining a relationship with the employee to achieve a successful return to work, at the appropriate time. Each support plan should be tailored to the employee. Keeping lines of communication open can reduce return-to-work barriers. e return-to-work process can be more suc- cessful if the employer has maintained con- tact with the employee. e employee can feel more comfortable participating in the development of the return-to-work plan. When an individual is disabled for an ex- tended period, she may have long periods of inactivity that can lead to deconditioning or the development of other medical condi- tions, which can decrease the likelihood of a successful return to work. For this reason, employers and provid- ers should focus on providing support to help minimize the duration of the absence and keep the employee connected to the workplace. Recovery plans that are work- oriented rather than clinic-based can play a key role. Employers also need to recognize that sometimes there are non-medical barri- ers to workplace performance or return to work. An older disabled worker may have been struggling with changes and new pres- sures in the workplace — new technology, rising expectations of speed and quality, as well as the dynamics of multiple genera- tions working together. ese concerns may be heightened when an employee is away from the workplace for an extended period. Return-to-work plans may need to address these barriers through training or mentoring arrangements. BE > pg. 24 Many age-related diseases and conditions such as cholesterol and diabetes are controllable, so the time to act is before a disability occurs. Credit: wolfstudiobkk (Shutterstock) DISABILITY MANAGEMENT FEATURES A successful return involves all sides of the equation back to work back to work back to work back to work back to work

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