Employer Costs for Diabetes and Kidney Disease
Author Information
Author(s): Kamal-Bahl Sachin J, Pantely Susan, Pyenson Bruce, Alexander Charles M
Primary Institution: Merck & Co, Inc
Hypothesis
What are the nonmedical costs incurred by employers for patients with diabetes and end-stage renal disease (ESRD)?
Conclusion
The study finds that ESRD onset results in significant nonmedical costs for employers, in addition to the direct medical costs already documented.
Supporting Evidence
- Employers may incur life insurance costs of $55,055 per ESRD-related death.
- Disability insurance costs are estimated at $31,671 per ESRD-related disability.
- The total monthly cost per employee with ESRD and diabetes was estimated to be $5,439.
Takeaway
When workers get really sick with kidney disease and diabetes, it costs their bosses a lot of money, not just for medical care but also for things like life insurance and replacing workers.
Methodology
The study simulated a hypothetical cohort of 10,000 individuals using data from various sources to estimate employer-paid nonmedical costs.
Potential Biases
The estimates may vary based on the actual demographics and health status of an employer's workforce.
Limitations
The results are based on model assumptions and do not account for costs due to worker absenteeism or presenteeism.
Participant Demographics
The simulated cohort included male and female employees aged 20 years and older.
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