Many industries across the U.S. have jobs with a increasedexposure to risks. For employees working under such conditions,high-risk jobs open the door to injuries, illnesses and thepossibility of not being able to return to work.

Fortunately for U.S. workers, there are both federal and stateinsurance programs they may turn to for assistance. Social SecurityDisability Insurance (SSDI), a federal program, provides benefitsto people who become disabled and can't work, regardless of whethertheir disability was job-related. Workers' compensation (WC)insurance, which states regulate, provides benefits to workerswhose disability is specifically job-related.

The National Council on Compensation Insurance's (NCCI) latestresearch brief, “Social Security Disability Insurance and WorkersCompensation,” examines the interplay between SSDI and WCbenefits. Because disabled workers can file for both SSDI and WCbenefits, it's critical to understand how federal and stateinsurance programs share the costs incurred in caring for theseindividuals.

Related: How to increase injured employee engagement in theworkers' comp system

Burden falls on WC programs in 'Standard Offset' states

In the majority of states — referred to as“Standard Offset” states — the SSDI benefit fordual recipients may be offset to ensure that the combinedbenefits don't exceed a cap established by the Social SecurityAdministration. However, in 14 states — referredto as “Reverse Offset” states — the WC benefitmay be offset for some or all benefit types to ensure that thecombined benefits don't exceed a cap established by thestate.

NCCI reported that WC share of total benefits paid for dualrecipients of WC permanent total disability and SSDI ranged from68% in a low-WC benefit state to 90% in a high-benefit state. Forexample, in Nebraska, a relatively low-benefit state for permanenttotal disability, WC pays 83% of total first-year benefits.Comparatively, SSDI pays 17% — a full 72% less than itwould pay if WC didn't exist.

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Highs and lows

The number of SSDI beneficiaries rose 58%, and SSDI expendituresgrew 138% (from $60 billion to $143 billion) over the 15-yearperiod between 2001 and 2015, peaking in 2010. Since then, thenumber of SSDI beneficiaries has been relatively stable, andspending growth has moderated.

Increases in Social Security retirement age, individualscontinuing to work at older ages and rising obesity rates are amongthe numerous factors cited as possible contributors to the growthin the SSDI program.

Workers suffer in a number of ways

The study examined the top five SSDI conditions for the 8.9million disabled workers in 2015. Diseases of the musculoskeletalsystem and mental disorders account for more than 60% of thecases.

These are the top five conditions:

• Musculoskeletal system — 31.7%
• Mental disorders — 30.6%
• Diseases of the nervous system and sense organs —9.4%
• Diseases of the circulatory system — 8.2%
• Injuries — 3.9%
• All others — 16.2%

Our workforce is changing, and so too will the risks that comewith it. Understanding the interplay between both programs is animportant factor for regulators and legislators, among others, whenconsidering changes to their state's WC system.

Related: 10 more issues impacting workers' compensation in2018