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Age in relation to worker compensation costs in the construction industry
Natalie V Schwatka1, Lesley M Butler, John C Rosecrance
1Department of Environmental and Radiological Health Sciences, Colorado State University, Fort Collins, CO 80521, USA. nvschwatka@gmail.com
American Journal of Industrial Medicine
|July 12, 2012
Summary
Workers' compensation costs rise with age in construction, particularly for older workers with specific injuries. This study highlights the impact of an aging workforce on claim expenses in physically demanding jobs.
Area of Science:
- Occupational Health
- Economics
- Gerontology
Background:
- The aging US workforce necessitates understanding workers' compensation (WC) cost implications.
- Physically demanding industries like construction face unique challenges with older workers.
Purpose of the Study:
- To investigate the relationship between worker age and injury types on WC claim costs.
- To analyze cost trends in the construction industry concerning an aging workforce.
Main Methods:
- Analysis of 107,064 Colorado WC claims filed between 1998 and 2008.
- Evaluation of the correlation between age, injury type, and total, medical, and indemnity claim costs.
Main Results:
- Mean WC costs (total, medical, indemnity) significantly increased with age (P < 0.0001).
- Indemnity and medical costs rose by 3.5% and 1.1% per year of age increase, respectively.
- Older workers (≥65) showed a higher association between age and indemnity costs for strains and contusions compared to younger workers (18-24).
Conclusions:
- Specific injury types appear to contribute to higher indemnity costs in older construction workers.
- Age-related cost increases in WC claims are evident, particularly in physically demanding sectors.
- Understanding these cost drivers is crucial for managing WC expenses with an aging workforce.
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