EAPs and Workers’ Compensation

EAPs (employee assistance programs) can help employers reduce their workers’ compensation costs in two ways. Your company might offer an EAP as part of its benefits program. EAPs can help control medical costs; they might also help control workers’ compensation costs. Here’s how. Many workers’ compensation claims have a mental health element. Your EAP can help employees deal with mental health problems, or stress from a variety of personal problems, that could lead to illness or injury. Studies have proven that workers under stress are more likely to become ill or injured, as are those who abuse drugs or alcohol. Second, your EAP can help workers who are dealing with a work-related injury cope with the stress of pain, being out of work or coping with a disability. EAPs emerged in the 1980s to address substance abuse problems in the workplace. Providing confidential access to drug and alcohol treatment programs can increase the likelihood that your programs will be utilized by those who need them.

Today, EAPs have evolved to address a wide range of problems, including:

• Drug and alcohol abuse
• Family and marital problems
• Child care or elder care needs
• Gambling problems
• Legal problems
• Financial problems/bankruptcy
• Outplacement or stresses due to restructuring or downsizing

An EAP offers employees confidential short-term counseling with a counselor specially trained to identify the employee’s problem. When appropriate, the EAP counselor will make referrals to specialists or other providers.

Some EAPs have their own network of specialists — such as addiction specialists, mental health specialists, family counseling specialists, legal advisors and more. Others work on a referral basis, referring employees to outside providers and programs, when necessary. The employee has the responsibility of following through with any referral appointments and making financial arrangements for any services that fall outside the scope of the benefit program.

EAPs can also help employers deal with personnel problems in a sensitive manner, without violating an employee’s right to privacy. For example, a supervisor who sees an employee’s work suffering due to a personal problem or possible drug or alcohol abuse can refer that employee to the EAP without having to inquire on the nature of the problem.

An EAP can help you get the most out of your benefit plan. A good EAP will promote its services with communications to your employees. When an employee turns to the EAP for assistance, the EAP counselor can help your employee identify resources covered by your benefit program. For example, an employee facing addiction might be referred to a program covered by your health benefits. An employee with mental health problems might be referred to a provider in your group health insurance plan’s network. EAPs may also inform employees of their rights under government-mandated benefit programs, such as workers’ compensation, the Family and Medical Leave Act, the Americans with Disabilities Act and federal and state mental health parity mandates.

Many EAPs charge on a per-employee basis, and costs can be as little as $2-3 per employee per month. Your costs will vary depending on your location, provider and services you select — such as in-person vs. telephone-only counseling.

Regardless of the plan you select, you will want to publicize it to ensure employees know it’s available when they need it. As employees in downsized workforces deal with increased workloads and increased demands at home, you may find an EAP is a worthwhile investment. 

Two Reasons to Consider an EAP

• EAPs can reduce employee stress, which can contribute to physical illness.
• EAPs can offer behavioral health treatments to those undergoing treatment for workplace illness or injury, possibly helping speed the return-to-work process by alleviating depression and stress related to the physical condition.

For more information or help, contact the Insurance professionals of EPIC’s CRA ProRental™ Insurance Program. Call us at: 800.234.6363.