Annual Care Costs in 2011

written by Kevin K. Johnson, CSA

Recently I hosted discussion sessions with employees at client companies. Two topics have been of particular interest with employees. One topic is ”the cost of caregiving services” for both an elder loved-one.  A second topic has been ”how to plan for the required care” for an elder loved-one and for themselves when necessary. 

I thought I would detail some of the costs that employees are concerned about in this blog posting. The issue of “how to plan for the required care” is a larger issue. I’ll discuss that one in our monthly newsletter.

Some of the employees I spoke with had reached the point where they wanted to compare the costs of various alternatives of care. For example, “can my mother stay in her home” and “how much does that cost?” “If she can’t stay in her home, what are the options and how much do they cost?”

ANNUAL CARE COSTS

Genworth recently published information on median costs for several categories of eldercare services. For reference, I’ve included costs for three states.

  Ohio California Florida
Home Health Aide $41,367 $48,048 $41,184
Adult Day Health Care $12,969 $20,020 $15,600
Assisted Living Facility* $39,900 $42,000 $31,950
Nursing Home Care** $69,350 $77,745 $76,777

* Private, one bedroom               ** Semi-private room 

This information provides a frame of reference for alternative comparison on price only. Determining which alternative is best for a specific situation is a more complex issue that we help employees work through.

Alzheimer’s Disease and Workplace Productivity

by Kevin K. Johnson, CSA

As you know, this blog focuses on the employer issue of ‘eldercare in the workplace’. As November is Alzheimer’s Disease Awareness Month, I was wondering if there were any definitive statistics detailing employer lost productivity due to employees absenteeism caused solely by this insidious disease. Of the approximately $33 billion in employer lost productivity per year due to employee adult caregiving, how much of it is due to employees tending to the eldercare needs of loved ones with Alzheimer’s type dementia disease? First, two non-medical, layman’s definitions.

Dementia — Dementia is caused by various diseases and conditions that result in damaged brain cells or connections between brain cells. Generally speaking, to meet the criteria of dementia, symptoms must include decline in memory and decline in at least one of the following cognitive abilities:

  • Ability to generate coherent speech or understand spoken or written language;
  • Ability to recognize or identify objects, assuming intact sensory function;
  • Ability to execute motor activities, assuming intact motor abilities, sensory function and comprehension of the required task; and
  • Ability to think abstractly, make sound judgments and plan and carry out complex tasks.

Additionally, the key is that the decline in cognitive abilities must be severe enough to interfere with activities of daily living (ADL’s). It’s the inability of the senior loved one to handle their ADL’s (bathing, dressing, toileting, walking, etc…) that is a major cause of employee absenteeism and employer lost productivity.

Alzheimer’s Disease — Alzheimer’s effects over 5.4 million people but just what is Alzheimer’s Disease? Alzheimer’s is actually a type of dementia, in fact, the most common form of dementia, accounting for approximately 60% to 80% of cases. Perhaps the second most well-known (not most common) type of dementia is Parkinson’s Disease. Characteristics of Alzheimer’s dementia include difficulty remembering names and recent events (often an early clinical symptom); apathy and depression are also often early symptoms. Later symptoms include impaired judgment, disorientation, confusion, behavior changes and difficulty speaking, swallowing and walking.

Alzheimer’s dementia is described as a regressive disease, causing adult behavior to seemingly move backwards in the aging process with respect to expressed behaviors and mental capability. Alzheimer’s 10 warning signs are:

  1. Confusion with time and location
  2. Challenges in planning or solving problems
  3. Memory loss that disrupts daily life
  4. Difficulty completing familiar tasks at home, at work or at leisure
  5. New problems with words in speaking or writing
  6. Misplacing things and losing the ability
  7. Decreased or poor judgement
  8. Withdrawal from work or social activities
  9. Misplacing things and losing the ability to retrace steps
  10. Trouble understanding visual images and spatial relationships

With this non-medical understanding of Alzheimer’s Dementia, consider the following. 

Caregiver Employment — Data from the “Alzheimer’s Association 2010 Women and Alzheimer’s Poll, October 2010″, uncovered that working caregivers of people with Alzheimer’s were making major changes to their work schedules because of their caregiving responsibilities.

  • 70% of men and 61% of women — had to go in late, leave early or take time off
  • 18% of men and 21% of women — had to take a leave of absences
  • 11% of men and 14% of women — went from working full-time to part-time
  • 11% of men and 12% of women — had to take a less demanding job
  • 14& of men, and 11% of women —  had to turn down a promotion
  • 8% of men and 11% of women — lost job benefits
  • 6% of men and 12% of women — had to give up working entirely
  • 3% of men and 10% of women — chose early retirement, and
  • 8% of men and 9% of women — saw work performance suffer to the point of possible dismissal

This data, the only quantifiable information I was able to locate, does not directly yield the extrapolated costs or the approximate percentage of the total $33 billion in lost employer productivity. Nevertheless, the information makes it clear that Alzheimer’s Dementia is likely responsible for a good deal of it.

As I mentioned prior, Alzheimer’s Dementia patients require a tremendous amount of assistance with activities of daily living (ADL’s). ADL’s account for a large percentage of the issues that employees struggle to manage and thereby is the direct cause of the absenteeism and loss of focus on the job that accounts for employer lost productivity. Also, it’s important to note that the information above represents data compiled from employees after the diagnosis of Alzheimer’s Dementia. It does not take into account the employee lost productivity that occured prior when employees tend to expend their paid time-off options (vacation days, sick time, etc…) to address their loved ones eldercare needs.

As stated in earlier blog postings, employers that implement solutions for their workforce to leverage when adult caregiving becomes necessary, can certainly expect to experience considerably less lost employee productivity cost. Creative focused employer benefit models such as those from Caring Concierge (www.caringconcierge.com), are now available for implementation at no cost to employers.

Note: Principal source of research for this posting was “2011 Alzheimer’s Disease Facts and Figures” published by the Alzheimer’s Association.

New Study Encourages Employers to Prepare for Working Caregivers

written by Kevin K. Johnson, CSA

A recent study just published in June titled “The MetLife Study of Caregiving Costs to Working Caregivers”, points out the need for employers to provide workplace accommodations such as flex-time or family medical leave (FMLA) so that caregiving employees can continue to stay in the workforce while caring for elderly parents.

Employers also need to consider the health implications for their caregiving workers. Studies have shown that caregiving has a negative impact on workplace productivity and results in as much as an additional 8% in healthcare costs for employers. (MetLife Mature Market Institute, Feb 2010). Stress is a big factor in working caregivers’ health. Employers can ensure that all workers have the opportunity to know about and access stress management programs to assist them with issues of caregiving for elder loved ones.

One of our January 2011 blogs titled, “Workplace Impact of Caregiving Employees“ outlined employer lost productivity cost due to employee caregiving. This June study by MetLife details a bit of the employee’s financial loss. The fact that without assistance, employees are experiencing significant lost wages and lost social security. In an earlier study using personal files and records for a sample of caregivers, it was estimated that private pension loss might add an additional $50,000 burden for caregivers over ”a career of caregiving”.  ”Total wage, Social Security, and private pension losses due to caregiving could range from $283,716 for men to $324,044 for women, or $303,880 on average for the typical caregiver. When this is multiplied be the 9.7 million people age 50+ caring for their parents, the amount lost is nearly $3 trillion.”

The implications for caregiving employees and their employers are clear. Employee lost income coupled with employer lost productivity adds up to a serious workplace problem. As employers awareness increases regarding the financial impact of lost productivity to their workplace, they are introducing solutions to address this issue. In so doing, employers are showing their employees that they care about issues that impact their lives. These employers actions help to maintain the employ of their critical workers; a win-win outcome.

The most progressive employers are indeed “learning” and leading” the way to a more productive workplace.

Employers Want to Reduce Impact of Absenteeism on Operations

written by Kevin K. Johnson, CSA

Over the past decade, and certainly during the recent recession, employers have been successful in actually increasing overall productivity. Many employers have accomplished this while reducing the size of their work force; a factor that has directly led to less post-recession hiring. Another outcome of reduced workforce is that many employers are so “optimally” staffed that any unexpected absenteeism becomes a critical issue directly impacting company performance. A recent article posted on “Plansponsor“* attests to this issue. 

That article reports that a survey from June 2010 titled “Survey on Absence and Disability Management 2010″ found that 46% of employers are making the reduction of absenteeism’s impact on operations a top HR priority.

The report found that employers who link their absence programs to health and life management initiatives are having success in better managing unscheduled employee absences. Read more by accessing the article on the Plansponsor web site, http://www.plansponsor.com/).

* “Plansponsor” is an information and solutions resource for America’s retirement benefits decision makers.

 

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