Reducing Costs by Integrating EAP into Disability Coverage 

Some 70 percent of employers say that disability conditions related to depression are increasing in cost and frequency, as indicated in the 2002 Survey of Employers’ Time-Off and Disability Programs by Mercer Human Resource Consulting. This trend continues to have a staggering impact on U.S. employers. According to a 2005 U.S. Census Bureau report, 12.6 percent (or 21.45 million) of the nation’s 170 million workers had reported a disability, and 7.5 million of those were for mental health reasons.

For agents, this presents a selling opportunity, both in providing a solution for clients and for packaging integrated benefits that result in more commissions. And according to some estimates, employee assistance programs (EAPs) interventions successfully prevent or reduce the duration of 20 percent of disability claims by serving as an early intervention tool.

Integrating EAPs with short and long-term disability insurance can be a highly effective strategy in reducing the number and duration of claims.

An ounce of prevention
An integrated EAP strategy can be an important preventive solution, cutting down on disability claims altogether by addressing problems early on. EAPs are designed to treat problems upstream and can address an employee’s personal issues before they escalate into a disability claim. EAPs educate and maintain awareness among employees, encouraging use of the program should there be any behavioral health problems.

EAPs also assess for and target behavioral health and depressive disorders, and short-term talk therapy can often resolve these issues, reducing the need for more expensive benefits.

Back to work, but more quickly
The complexities of a disability claim can include a number of personal problems that may prevent the employee from returning to work. And behavioral health issues can both cause or exacerbate a disability claim. In fact, depression and stress-related disorders are now among the top four reasons for disability, according to the Mercer study, and nearly 40 percent of all disability claims include a co-existing mental health condition.

When a disability claim does occur, integrating EAP services into the disability management process has been shown to speed an employee’s return to work. First of all, EAPs are often seen as trusted, independent vendors that give employees the added confidence to participate in a return-to-work program when contacted.

Second, many disability claims include mental health and behavioral issues as a result of the claimant’s impairment or injury — this can include depression, family and relationship issues, or merely an adjustment to a reduced quality of living. Depression in particular can be a significant obstacle to full recovery, making it harder for employees to stick to a physician’s orders or take necessary medication, for instance. Outreach by behavioral health specialists who are qualified to successfully address issues such as depression can be pivotal in engaging employees in the recovery process and getting them back to work.

An integrated EAP and disability program can address all dimensions of an employee’s physical, mental, and behavioral health concerns, resulting in healthier, more productive employees. Packaging a strategic EAP program with disability can provide an additional selling opportunity for agents while helping employer clients manage disability claims and absences more effectively.

David Campbell is vice president of quality and customers for ComPsych Corp. He can be reached at 312-595-4000 or info@compsych.com.