NCJ Number
108957
Journal
Compensation and Benefits Management Volume: 13 Issue: 2 Dated: (Winter 1987) Pages: 27-29
Date Published
1987
Length
3 pages
Annotation
Because the total cost impact of AIDS on employee benefits programs will be significant, management must begin to focus on altering existing plans to manage this risk better.
Abstract
It is estimated that between 35 and 55 percent of people with AIDS are employed and covered by employer-sponsored benefit plans. The average medical cost of an individual AIDS claim is currently estimated as ranging from $42,000 to $140,000, after the initial diagnosis is made. The cost to employers could be more than $14 billion in total employee benefits costs over the next 5 years, and the cost of life insurance could increase dramatically if an employer is providing a high level of group life insurance. Employers can deal with the AIDS issue by educating employees, evaluating various case management techniques and the company's risk profile, and by examining risk tolerance factors. 1 exhibit.