New research puts the annual price tag for occupational injuries and illnesses at well over $200 billion, higher than generally assumed.
In the first comprehensive review of its kind since 1992, a University of California Davis researcher has estimated the national annual price tag of occupational injuries and illnesses at $250 billion.
That figure is $31 billion more than the direct and indirect costs of all cancers, $76 billion more than diabetes, and $187 more than strokes.
The study strongly suggests that the United States should place greater emphasis on reducing work-related injuries and illnesses, especially since costs have risen by more than $33 billion (inflation adjusted) since the 1992 analysis.
"It’s unfortunate that occupational health doesn’t get the attention it deserves," says J. Paul Leigh, professor of public health sciences at UC Davis and author of the study. "The costs are enormous and continue to grow. And the potential for health risks are high, given that most people between the ages of 22 to 65 spend 40 percent of their waking hours at work."
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Where Did the Data Come From?
In generating the estimate, Leigh gathered 2007 data on occupational injuries and illnesses and their costs for civilian workers, including agricultural and self-employed workers. Injury and disease data came from the Bureau of Labor Statistics (BLS) and the Centers for Disease Control and Prevention.
Available epidemiological research on the percentages of diseases—such as chronic obstructive pulmonary disease and cancer—that can be attributed to occupational exposures was also considered. Leigh accounted for unreported injury and illness using estimates from BLS and state workers’ compensation systems.
Cost data came from the National Council on Compensation Insurance, the Healthcare Cost and Utilization Project, and the National Academy of Social Insurance. Total costs were calculated by multiplying the number of cases of occupational injury or illness by the average cost per case.
The study estimated that there were:
- 8,564,600 fatal and nonfatal work-related injuries, which cost $192 billion
- 516,100 fatal and nonfatal work-related illnesses, which cost $58 billion
The study also estimated 59,102 combined deaths from occupational injuries and diseases, which was higher than all deaths from motor vehicle crashes (43,945), breast cancer (40,970), or prostate cancer (29,093) in the same year.
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Leigh noted in the study that workers’ compensation premiums do not currently account for these high figures. In fact, less than 25 percent of the costs of workplace injuries and illnesses are covered by workers’ comp. As a result, many occupational health issues go unresolved, and the bulk of the costs are absorbed by employer-provided medical insurance, Medicare, and Medicaid, raising healthcare costs for everyone.
Leigh believes that if workers’ comp premiums were based on costs for each employer rather than on industrywide costs, organizations would be much more motivated to invest in prevention campaigns and eliminate hazards because they would see the benefits of those changes to the bottom line.