June 18, 2009
Did you know...?
Employers underestimate depression’s impact on their employees and the costs to their business
Depression is the 2nd leading disability cause worldwide. The prevalence of depression in working adults is 28% and an estimated 72% are not currently in treatment. More than 6% of working adults had a major depressive episode in the prior 12 months, with lifetime prevalence at least twice that. There is often a significant delay in depression diagnosis and treatment with half of adults not receiving treatment until eight years or more after onset.
Depression affects approximately 16% of Short Term Disability (STD) claims and is often referred to as “the common cold of mental health”. Average STD lost days for depression are 72. A focus on 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 as more than 80% of all lost productivity for depressed employees is associated with sick leave and presenteeism.
Evidence associates relatively minor depression treatment costs with substantially higher medical and wage loss costs.
Lost time- Absence – 2.2 days/person/year
Presenteeism – 7.5 days/person/year
Co-morbidity – 97% of depressed cases are co-morbid
Average of 7 co-morbid conditions
A little depression may go a long way in impacting employer costs. Research shows that depression is a top driver of full costs for employers (#1 ahead of obesity, arthritis, back pain etc in the drivers of cost). Look beyond claims costs and include lost productivity.
Early identification and treatment of depression may reduce overall costs.
The full report is available at www.ibiweb.org.
*Please feel free to forward this information to any member of management in your company who would benefit from it.*
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