NU Online News Service, Jan.18, 12:38 a.m. EST
The workers' compensation indemnity costs for injured workers aged 65 and older are generally lower than younger employees because they are generally paid less, according to a new study.
That finding came in a detailed new report on older workers' injury claims by the National Council on Compensation Insurance, which noted that the number of workers 65 and older has increased by nearly 50 percent since the late 1980s and is likely "to increase in light of recent financial and economic disruptions."
In announcing the report, Boca Raton, Fla.-based NCCI said, "There is a distinct (downward) break in indemnity severity between ages 60-64 and 65 and older."
Workers aged 65 and older comprise a small share of employment and injury and illness cases–below 5 percent–which is why a previous NCCI study limited its analysis to persons aged 64 and younger, the company said.
Its latest report examined not only how workers aged 65 and older differed from all workers in terms of their share of indemnity claims, but also for medical payments, frequency and cost per claim. It also looked at implications for workers' comp claims management and loss costs.
In addition to the findings on lost wage indemnity payments, key conclusions in the report were:
o Falls, slips and trips are by far the greatest cause of injury among older workers.
o Medical severity is higher for older workers, although the differential between workers aged 65 and older and nearby age cohorts is small.
o Shares of indemnity and medical payments of older workers have a close relationship to their share of claims.
o Frequency is less for older workers, especially in the more hazardous manufacturing and construction-related industries and occupations. In contrast, claim frequency is higher for older workers in the leisure and hospitality industry and food preparation and service occupations (as well as in sales and related occupations).
NCCI said that examining the percentage of working-age population looking for work, it found the percentage of those looking aged 65 and over stood at 11 percent in 1990, and rose to 17 percent in 2008.
"For many persons in their late 50s and early 60s, whose life savings have been severely depleted and whose homes are now worth far less than anticipated, the idea of a "normal" retirement is now more in the realm of wishful thinking than an achievable reality," NCCI reported.
It said another reason workers stay on the job longer is that they are healthier. NCCI cited a National Health Information Survey, finding that the percentage of persons aged 65 to 74 reporting that they are in fair or poor health has declined from 32.5 percent to 22.9 percent between 1982-1984 and 2005-2007, the latest years for which data is available.
NCCI said the increase in the number of older persons in the workforce presents both challenges and opportunities for safety and loss prevention managers.
It said the challenges come from the fact that as people age there appears to be a deterioration in factors such as eyesight, hearing, strength, flexibility, reaction time and mental processes (slower recall rates and less effective short-term memory).
NCCI suggested that to reduce risks of falls, employers can enhance lighting where necessary, install slip-resistant flooring and provide handrails (steps that would likely benefit the safety for all workers as well). The installation of noise dampening materials may also help where hearing may be an issue.
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