Excess MS, autoimmune healthcare costs at $580K per 1K employees
Total represents 5% of annual health spending for 1,000-worker outfit
For every 1,000 employees in the U.S., about $580,000 is spent each year in excess healthcare costs and lost work time from five autoimmune diseases alone, including multiple sclerosis (MS), a report from healthcare startup Welltheory shows.
This represents about 5% of the typical annual healthcare spending for a company with 1,000 employees and doesn’t account for hiring costs due to high turnover or lost productivity from employees working while sick or leaving the workforce early. The other autoimmune diseases covered in the report are rheumatoid arthritis, inflammatory bowel disease, psoriasis, and thyroid autoimmune diseases, including Graves’ disease and Hashimoto’s thyroiditis.
“With [these] data, we’re giving employers an opportunity to more accurately identify the underlying prevalence [how common they are] and impact of these conditions, to then be able to provide essential support to their employees,” Ellen Rudolph, Welltheory’s co-founder and CEO, said in a company press release.
In MS, the immune system mounts a misguided attack against the brain and spinal cord, resulting in blurred vision, fatigue, and difficulty walking, among other symptoms that can affect daily activities, including work.
“Living with an autoimmune disease makes everyday feel unpredictable,” Rudolph said. “I know from firsthand experience that these conditions don’t always show visible symptoms, making them particularly challenging to recognize and understand in a workplace setting.”
For its “Autoimmune Disease Impact Report,” the company collaborated with the Integrated Benefits Institute (IBI), a U.S. nonprofit that uses research to provide insights into how employers can invest wisely in their workforce’s health, while reducing costs.
“Despite affecting millions of employees, benefits programs often fail to address their true financial and productivity impact. Forward-thinking employers have an opportunity to intervene earlier, improve employee well-being, and reduce long-term costs,” said Jim Huffman, president of IBI.
Autoimmune healthcare costs
In a representative sample of employed adults, 7.2% received treatment for one of the five diseases, with women being about twice as likely as men to have a diagnosis. This likely underestimates the true prevalence, however, as there are more than 100 known autoimmune diseases and many are underdiagnosed or untreated.
Excess medical and pharmacy costs for employees with autoimmune diseases like MS can range from $2,200 to $33,500 per year. On average, this is more than twice the cost for employees without these diseases, and it can be up to six times higher.
For every 1,000 employees, the total excess medical and pharmacy costs for the five autoimmune diseases is about $542,000 per year. “This cost represents an incremental 5% of the typical annual healthcare expenditure for an employer of that size,” wrote Barry Hall, the researcher at IBI who authored the report.
On average, short-term disability claims result in 44 to 73 lost work days per patient, costing employers about $16,300 to $27,200 per year in wage replacements and paid employee benefits per claim. Long-term disability claims are even more costly, with an average of 183 to 287 lost work days, costing employers up to $82,300.
Employees with autoimmune diseases may still be present at work but have difficulties with concentration, performance, and decision making, leading to errors and delays. This “presenteeism” wasn’t quantified in the report but can contribute to burnout and challenges with teamwork.
“There is no known cure for autoimmune diseases, but treatments can help manage symptoms. Employers can play a crucial role by providing benefits programs and flexible, supportive and inclusive work environments that enable employees to perform at their best,” Hall wrote.
Data that fed the report were drawn from the Agency for Healthcare Research and Quality’s Medical, Expenditure Panel Survey, IBI’s Health and Productivity Benchmarking System, and the U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics and National Compensation Survey.
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