MANAGING WORKERS COMPENSATION COSTS THROUGH ADVANCED DRUG TESTING METHODS
Introduction Lab-based oral fluid testing can be a more affordable alternative to urine testing and with the federal government currently working on a set of regulations for these types of tests, more companies are bound to start using them. In addition to being more cost effective than urine testing, lab-based oral fluid testing and drug testing in general can also help a company save money on Workers’ Compensation claims and premiums. Corporate drug testing expert Bill Current, founder of the Current Consulting Group, and Mark Pew, senior vice president of medical cost management services company PRIUM, recently conducted a webinar detailing how lab-based oral fluid testing could potentially save money for companies for the actual testing process, in lost productivity costs and in Workers’ Compensation premiums. Lab-Based Urine vs Lab-Based Oral Fluid Actual Costs Current said in order to fully realize how much money can be saved by using lab-based oral fluid testing versus urine testing, a company has to look at not only the cost of the lab fees involved, but also the amount of downtime an employee and supervisor would have as a result of a urine drug test. He offered the following breakdown to figure out the true cost of a lab-based urine test as compared to a lab-based oral fluid test: Lab-based Cost Factors (based on a national average) The national average for a urine collection fee at a laboratory is $17, Current said. Because a company could easily have an employee trained to perform the relatively easy oral fluid collection, there would be no collection fees associated with collecting oral fluid Drug Testing Price Including Laboratory and Administration Fees The price for performing an actual laboratory drug test at a facility that is certified by the Substance Abuse and Mental Health Services Administration (SAMSHA), including a review by a Medical Review Officer (MRO) is roughly $28 for urine and $29 for oral fluid. So, together with the collection fee, a lab-based urine test will cost, on average, $45 compared to just $29 for a lab-based oral fluid test. Employee Downtime However, drug tests also cost employers in terms of lost productivity for employees and, often, supervisors, too. Each employee and company will be different, but for his example, Current used an employee making $10.10 per hour and a supervisor making $24 per hour performing a post-accident drug test For a lab-based urine test, the employee would have to travel to the collection site accompanied by a supervisor. This could easily take 1.5 hours. Using Current’s example wages, the employer would lose $15.15 for the employee in lost time and $36 for the supervisor for a lab-based urine drug test.
TestCountry.com – Making Life Easier
Toll-free (1) 800-656-0745
2
But, because an oral fluid collection can be done on site by a supervisor and takes only a few minutes, the down time for an employee and supervisor would only be about 0.25 hours. This means that the total cost in lost work time would only be about $2.53 for the employee and $6 for the supervisor for an oral fluid collection. Added together, the total cost of lost work time for a lab-based urine test would be $51.15 while it would only be about $8.53 for a lab-based oral fluid test. And, added to the actual cost of the tests, a lab-based urine drug test costs an employer in this case about $96.15 as compared to $37.53 for a lab-based oral fluid test. Summary of the Costs: Lab-Based Urine
Lab-Based Oral Fluid
Collection Fee (National Average)
$17
$0 (can be done at work by trained supervisor)
Drug Testing Fee at SAMSHA accredited lab including admin costs & MRO Review
$28
$29
Lost work time for employee (based on an hourly wage of $10.10)
$15.15 (for 1.5 hours of time to travel to collection site and complete collection process)
$2.53 (for 0.25 hours of time to complete collection process in-house)
Lost time for supervisor (based on an hourly wage of $24)
$36
$6
Total cost of lost work time
$51.15
$8.53
Total cost of test for employer
$96.15
$37.53
However, drug tests also cost employers in terms of lost productivity for employees and, often, supervisors, too. Other advantages of lab-based oral fluid testing Aside from cost, lab-based oral fluid testing offers other advantages over urine testing. Oral fluid is similar to blood in that it is detectable immediately while urine has a lag time of about an hour. That means if someone smokes marijuana on their lunch break and immediately has an accident after lunch, if you were doing a urine test, that test might show up as negative if it has been conducted within an hour of that person smoking marijuana. On an oral fluid test, it would show up as positive. Oral fluid also tests for the parent drug and not just a metabolite of a drug, making it possible to detect recent drug use more accurately than urine, which typically detects only drug metabolites. Advances in oral fluid drug testing and collection technology are making it possible to more accurately quantify drug test results, as well. With oral fluid, gender collector issues are eliminated, as the collector and donor don’t have to be the same gender. Observed collections can occur easily without causing embarrassment for the donor and it TestCountry.com – Making Life Easier
Toll-free (1) 800-656-0745
3
eliminates all of the many precautions that are required with urine sample collecting, like procuring a bathroom with adequate privacy. It also eliminates the time-consuming issue of “shy bladder.” Collecting oral fluid takes about five minutes and it can be done in an office or right on the spot where the incident occurred, if necessary. Cheating is all but eliminated, as well. As long as you observe the person for a minute or two prior to the test being conducted to ensure they do not ingest anything like mouthwash or gum, there is no way to attempt to adulterate their oral fluid. Also, the collection process is easily observable, meaning there is no chance for the donor to cheat. In fact, Current pointed out, if you search online for ways to cheat a urine test, you will see hundreds of thousands of results and only a handful of results for cheating on an oral fluid test, none of which are feasible. One notable disadvantage for oral fluid testing is that drugs are not detectable in oral fluid for as long as they are in urine. Typically, drugs will no longer be detectable in oral fluid after a couple of days after usage, whereas they will remain detectable in urine for up to several days. Lab-Based Versus Point-of-Contact-Testing Although point-of-contact-testing (POCT) is less expensive than lab-based testing, lab-based testing provides a longer window of detection than POCT testing and also tends to have lower cutoff levels, meaning you won’t risk missing any positive results. POCT kits for oral fluid are generally only good for detecting drug use for about a day, while lab-based tests extend that window usually to a few days. Product Quality In order to know if you are working with a high quality product, which is imperative in drug testing, Current said, it’s important to ignore the marketing material from the company and instead do your own research, seeking out independent, empirical data in respected publications and ensuring the product is FDA-cleared. You can also ask for referrals from customers of the company to see if they’re satisfied with the product. Essentially, Current said, the most important thing is to know who you’re doing business with. Why Test for Drugs? As drug testing is an extra expense for companies, some smaller companies may be tempted to just forego it altogether. However, as Current explained, that is a bad idea and will likely end up costing an employer even more in the long run than a drug testing plan.
And that’s because of the magnitude of the drug problem in the United States. According to a federal government survey done by SAMSHA, it is estimated that over 24 million Americans aged 12 and older are current illicit drug users. This is 9.4% of the population 12 or older. Of the 22.4 million current illicit drug users who are 18 or older, 69% were employed full- or part-time. Among adults who are unemployed, 18% are drug users.
TestCountry.com – Making Life Easier
Toll-free (1) 800-656-0745
4
It is also estimated that these numbers are lower than actual numbers because people were asked to volunteer information about their illicit drug use and were told that the survey was being conducted for the government, which would likely have prompted some of them to withhold information. - See more at: http://www.testcountry.com/content/managing-workers-compensation-costs-throughadvanced-drug-testing-methods.html#sthash.6TySjQ8r.dpuf. Popular Drugs of Abuse The most popular drugs of abuse according to SAMSHA are: • Marijuana - 7.5% of population • Prescription Drugs - 2.5% of population • Cocaine - 0.6% of population • Hallucinogens - 0.5% of population • Inhalants - 0.2% of population • Heroin - 0.1% of population People who have drug dependence problems often exhibit the same telltale signs, which include: • Frequent financial problems • Avoidance of friends and colleagues • Blaming others for own problems and shortcomings • Complaints about problems at home • Deterioration in personal appearance or personal hygiene • Complaints, excuses and time off for vaguely defined illnesses or “family problems” Drug Abuse in the Workplace With drug abuse so prevalent in the country, it can easily make its way into the workplace and have serious consequences. Drug abuse affects the workplace in the following ways: • Inconsistent work quality • Poor concentration and lack of focus • Lowered productivity or erratic work patterns • Increased absenteeism • Unexplained disappearances from the jobsite • Carelessness, mistakes or errors in judgment • Needless risk taking TestCountry.com – Making Life Easier
Toll-free (1) 800-656-0745
5
• Disregard for safety of self and others — on-the-job and off-the-job accidents • Extended lunch periods and early departures Cost to a business of having a single drug abuser on workforce The U.S. Navy performed a study several years ago to quantify the cost of having a drug abuser in the workplace and came up with the figure that a typical substance abusing employee costs his or her employer an average of $7,000 in lost productivity and replacement costs per year. Seeing as how this number comes from a several-years-old study, Current said, it would likely be higher now. Overall, the monetary cost of workplace substance abuse ranges from $60 billion to as much as $200 billion annually, but, Current noted, for individual employers, especially small businesses, it’s the $7,000 per year that a drug abuser costs them that they should concentrate on, as that’s the cost that directly affects them and shows them that a comprehensive drug testing policy can actually save them money. How a Workplace Drug Testing Program Translates to Workers’ Comp Claims Another way in which having a drug testing policy saves businesses money is by cutting down on Workers’ Compensation claims. Pew said during his portion of the presentation that while people may think Workers’ Compensation claims are due to major incidents, the majority of claims are simply from falling down. And, he added, that doesn’t mean falling off of something or falling from one level to another level. It’s just slipping or tripping and falling onto the ground or the floor that you’re already on. According to the American Council on Exercise, Pew said: • the average office worker takes 4,327 steps during the work day • the average construction worker takes 9,646 steps during the work day • and the average mail carrier takes 18,904 steps during the work day. With so much walking going on in the various workplaces, these simple slips, trips and falls can easily lead to employee absence, a high rate of Workers’ Comp claims and reduced employee morale if a lot of employees are being injured. Pew said according to the 2013 Liberty Mutual Workplace Safety Index, falls on the same level were the second leading cause of workplace injuries and were responsible for more than $6 Billion (13.6% overall) of direct costs for companies. Incidents of slips, trips and falls also grew 25.6% from 2005 and 2013 and, according to the National Safety Council, they were responsible for $70 Billion per year in Workers’ Compensation and medical costs and were the leading cause of death in the workplace. So, what do slips, trips and falls have to do with drug abuse in the workplace? As Pew pointed out, these numbers show that it’s not just people using heavy equipment or doing intricate tasks that you have to worry about being impaired. Even people who are performing the simple task of walking can easily get injured on the job. This speaks to the concentration that even a simple, reflexive task that almost anyone can do requires. Not all slips, trips and falls are caused by substance abuse, of course. Wet or damaged floor surfaces, weather hazards, chronic illnesses and even poor walking technique (dragging feet) or sloppiness (wearing ill-fitting shoes or clothing or not having shoes tied) can all contribute to common falls. But, carelessness and a lack of attention is a big factor in someone falling and a person who is under the TestCountry.com – Making Life Easier
Toll-free (1) 800-656-0745
6
influence of drugs is more likely to be careless and inattentive and may even be basically oblivious to their surroundings at least some of the time. In fact, Pew revealed, the National Council on Alcoholism and Drug Dependence (NCADD) says that cognitive impairment due to workplace drug abuse costs businesses $81 Billion annually. Lower Workers’ Comp premiums Aside from saving a workplace money in lost productivity, a drug testing program also allows a business to have lower Workers’ Compensation premiums. In Ohio, for example, if you can prove that you’ve maintained a drug free workplace over a five year period, your Workers’ Comp premiums will be lowered by 20%. In Georgia, having a drug testing program will allow you to have your premiums lowered by 7.5% and in Alabama, Arkansas, Florida, Hawaii, Mississippi, South Carolina, Tennessee, Virginia and Washington, your premiums will be 5% lower if you have a drug testing policy in place. Idaho has yet to decide how much lower its premiums will be for companies with a drug testing policy. These reduced premiums are on top of the savings a company will see from: • Reduced risk for on-the-job accidents • Reduced absenteeism • Reduced underperformance while at work Companies that have conducted drug testing for several years must now justify the expense of maintaining a program. As a result, they are searching for ways to streamline their programs and improve their overall return on investment. As a result of this, many companies are turning to lab-based oral fluid testing to help cut drug testing costs while still maintaining the integrity of their drug testing program and making it more convenient for all parties involved.
Source: Webinar "Managing Workers' Compensation Costs Through Advanced Drug Testing Methods" Hosted & Sponsored by OraSure Technologies, Inc. & Co-Sponsored by Prium. Hosted by Bill Current and Mark Pew. About TestCountry Drug testing employees at your workplace, drug testing your teenagers at home with a variety of home drug testing such hair or saliva drug tests, or testing for HIV AIDS virus, fertility (ovulation, pregnancy or male sperm count) should not be difficult, inconvenient and expensive. This is the reason why TestCountry started in 2001. At TestCountry.com we offer a wide variety of home and workplace test kits like urine, hair and saliva drug testing kits, HIV testing kits, home testing kits for thyroid (TSH Tests) and prostate cancer (PSA Tests), home fertility tests (male sperm count tests or ovulation tests), test kits for nicotine (tobacco), alcohol testing kits, even alcohol digital detectors and more. Contact Us Within the United States, call us at (858) 784 6904 or toll-free (866) 237-7976 or (800) 656-0745 If calling internationally, dial +1 858 784 6904. Customer Service Hours Monday - Friday 8.00am - 5.00pm PST (except for public holidays) TestCountry.com – Making Life Easier
Toll-free (1) 800-656-0745
7
Mailing Address: Global Business Support Systems, Inc. DBA TestCountry 6370 Nancy Ridge Dr. #104 San Diego, CA 92121 Fax: (630) 566-0708 E-mail: info@testcountry.com Disclaimer: The policies and procedures included herewith are purely informational and that no direct or indirect representation is being made, nor any warranty given to the contents. The Reader recognizes that the law with respect to background testing varies by jurisdiction and is therefore the Reader’s responsibility to comply with the law surrounding the specific jurisdiction. Qualified legal counsel should be consulted with regard to the use or implementation of these policies and procedures. This white paper is sold/distributed with the understanding that the Publisher is not engaged in rendering legal, accounting, or other professional service. This product is not a substitute for a professional legal advice, but instead serves as a guide to help your organization create and implement a solid background testing policy. The Reader assumes all risk of use. The publisher disclaims all responsibilities for any loss, injury, claim, liability, or damage of any kind resulting from, arising out of or any way related to any errors in or omissions from the policies and procedures included herewith – including but not limited to technical inaccuracies and typographical errors. The information contained in this whitepaper is not guaranteed to be complete or current.
TestCountry.com – Making Life Easier
Toll-free (1) 800-656-0745
8