According to a new study from a UC Davis researcher, occupational illness and injury could be costing the U.S. $250 billion each year. That estimation is based on data collected in 2007, adjusted for inflation. If accurate, work-related injury and illness costs are $31 billion higher than direct and indirect costs for the care of all cancers and $76 billion higher than diabetes.

Surprisingly, workers' compensation covers less than one quarter of the costs of workplace injuries and illnesses. The remainder of the costs is covered by employer-provided medical insurance and government insurance assistance such as Medicare and Medicaid.

The author of the study, a professor of public health sciences, said that occupational health does not get the attention it deserves. The costs go up annually and more needs to be done on the preventative side. He also notes that the significance of work-related injury and illnesses cannot be over emphasized: Most working-aged people spend 40 percent of their waking hours at work.

The study, "Economic Burden of Occupational Injury and Illness in the United States," took data from the U.S. Bureau of Labor Statistics and the Centers for Disease Control and Prevention. Cost data was retrieved from the Healthcare Cost and Utilization Project, the National Council on Compensation Insurance and the National Academy of Social Insurance.

According to estimates shared in the study, work-related injuries, both fatal and non-fatal, exceeded 8.5 million and cost $192 billion. Both fatal and non-fatal workplace illnesses numbered just over half a million and cost $58 billion. The cost was estimated by multiplying the number of cases times the average cost per case.

The director of the National Institute for Occupational Safety and Health said that studies like this one help people understand the economic burden of occupational illness and injury. Perhaps it will help spur preventative change in the industry.

Source: Occupational Health & Safety, "U.S. Work-Related Injuries, Illnesses Cost $250 Billion Annually: Study," Jan. 23, 2012