The Real Costs of Workforce Depression
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urce: The Real Costs of Depression in the Workforce , Integrated Benefits Institute, 2009
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Employees who live with depression know its costs only too well. Employers, however, are likely to greatly underestimate depression’s impact on their employees and the costs to their business.
Transcript of The Real Costs of Workforce Depression
Source: The Real Costs of Depression in the Workforce, Integrated Benefits Institute, 2009
IBI Research on the Real Costs of Workplace Depression
Purpose: Quantify the full costs of workforce depression to include lost productivity
Key Insights:
“The common cold of mental health,” depression affects only 16% of STD claims, but their cost, duration and complexity grabs employer attention
Medical payments for STD with depression represents only about a third of their full costs, ignoring wage replacement payments and lost productivity.
Most significantly, lost productivity is greatest for those employees still working, with more than 80% of all lost productivity for depressed employees associated with sick leave and presenteeism .
Evidence in the research and expert advice suggests that early identification and treatment of depression may reduce overall costs.
Other evidence associates relatively minor depression treatment costs with substantially higher medical and wage loss costs.
The full study is available to members of IBI.
Commentary is available in Notes view.
Depression and STD Claims
No depression80%
STD claim, subsequent depression
11%
Only depression treatment
prior to STD 4%
Depression STD diagnosis
5%N = 45,171 EEs
Source: The Real Costs of Depression in the Workforce, Integrated Benefits Institute, 2009
STD Lost Time by Depression
50
7265
0
10
20
30
40
50
60
70
80
Control Group Depression Group Co-morbid Group
Ave
. ST
D L
ost
Day
s
Source: The Real Costs of Depression in the Workforce, Integrated Benefits Institute, 2009
STD with Depression – Full Costs
$8,414
$1,989
$982 $4,301
$16,021
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Medical care STD lost time
Depression medical Non-depression medicalPharmacy STD wage replacementLost productivity
$11,385
$20,322Total full costs = $31,707
Source: The Real Costs of Depression in the Workforce, Integrated Benefits Institute, 2009
$11,058$6,991
$1,931
$2,272
$4,460
$3,728
$16,544
$13,269
$963$605$0
$10,000
$20,000
$30,000
$40,000
No prior treatment Prior treatment
Fu
ll c
ost
s
Depression medical care Non-depression medical care
Pharmacy STD wage replacement
Lost productivity
Co-Morbid Depression Group
$34,598
$27,223
Source: The Real Costs of Depression in the Workforce, Integrated Benefits Institute, 2009
Total STD Costs by Component – No pre-STD depression treatment –
$0
$10,000
$20,000
$30,000
$40,000
Control Group Co-morbid Group
Depression medical Non-depression medical Pharmacy STD wage replacement Lost productivity
$26,846
$10,159
$1,124$3,603
$11,960
Source: The Real Costs of Depression in the Workforce, Integrated Benefits Institute, 2009
Total STD Costs by Component – No pre-STD depression treatment –
$0
$10,000
$20,000
$30,000
$40,000
Control Group Co-morbid Group
Depression medical Non-depression medical Pharmacy STD wage replacement Lost productivity
$26,846
$10,159
$1,124$3,603
$11,960
$605
Source: The Real Costs of Depression in the Workforce, Integrated Benefits Institute, 2009
Total STD Costs by Component – No pre-STD depression treatment –
$0
$10,000
$20,000
$30,000
$40,000
Control Group Co-morbid Group
Depression medical Non-depression medical Pharmacy STD wage replacement Lost productivity
$26,846
$34,598
$10,159
$1,124$3,603
$11,960
$16,544
$4, 460
$1,931
$11,058
$605
Source: The Real Costs of Depression in the Workforce, Integrated Benefits Institute, 2009
Depression from a Broader View: HPQ Self-Reports
• Prevalence: 28%– Currently not in treatment: 70%
• Lost time– Absence: 2.2 days/person/year
– Presenteeism: 7.5 days/person/year
• Co-morbidity
– 97% of depression cases are co-morbid
– Average of 7 co-morbid conditions
Source: The Real Costs of Depression in the Workforce, Integrated Benefits Institute, 2009
Lost days for depression-
diagnosis STD 6%
Sick days 18%
Lost days for STD claim with
subsequent depression
13%
Presenteeism lost days
63%
Components of Lost Productivity for Depressed Employees
Source: The Real Costs of Depression in the Workforce, Integrated Benefits Institute, 2009
What Does the Research Teach?
• Look beyond the STD diagnosis
• Broaden scope beyond claims costs to include lost productivity – improved ROI
• A little depression may go a long way
• Self-report data must be integrated for full costs
• Employers should consider presenteeism effects to see what really drives productivity
