By Ben Hoffman, MD, MPH
Chief Medical Officer, WorkSTEPS
The Hidden Cost of Healthcare and Injuries
For human resources leaders, safety executives, and business owners, the numbers are sobering: employer-sponsored healthcare premiums have skyrocketed—up 55% over the last decade, averaging nearly $20,000 per family plan. Employers typically shoulder 82% of that cost. Add in workers’ compensation claims averaging $43,000 per medically consulted injury, and the financial risk is clear.
Given the current landscape, these rising costs aren’t slowing down. Many HR and finance teams are seeing annual increases outpace revenue growth, forcing difficult decisions around budgeting, benefits design, and workforce strategy. However, hidden inside these rising numbers is an often-overlooked truth: the health of the employees you hire directly influences your long-term costs.
Healthy employees use less insurance, file fewer claims, and stay productive longer.
When you hire healthy employees, everyone benefits. Healthy employees use less insurance, file fewer claims, and stay productive longer. That means lower group health costs, fewer workplace injuries, and reduced turnover, all of which directly impact your bottom line.
What Is POET and Why It Matters
That’s where Post-Offer Employment Testing (POET) comes in. POET is a functional, job-specific assessment performed after a conditional job offer but before onboarding. It’s designed to verify whether candidates can safely meet the physical requirements of the job, such as lifting, carrying, pushing, pulling, endurance, or grip strength, before they step into a high-risk environment.
Importantly, POET isn’t about excluding candidates; it’s about protecting them and your organization. When employers understand whether a candidate can safely perform essential functions, they can place them appropriately, provide tailored accommodations, or prevent potential injury altogether. This approach reduces risk, ensures ADA compliance, and reinforces a culture of safety from day one.
POET also plays a critical role in controlling group health costs. Employees who meet the physical demands of their roles are less likely to experience musculoskeletal injuries, chronic strain issues, or preventable workplace accidents—all of which contribute heavily to rising medical and pharmacy costs. By validating physical readiness upfront, employers avoid costly injuries and reduce health-related claims resulting in a healthier workforce that uses fewer medical resources and drives down group health costs.
The Study: Data That Speaks to ROI
A large, multiyear study analyzed 5 million individuals and 480 million claims across medical, pharmacy, disability, workers’ compensation, and absence records. Employees who completed POET were compared to matched peers (controlling for age, gender, position, and company).
The results were clear: POET isn’t just a safety step; it’s a measurable cost-control strategy.
Key Results for Employers
- $528 lower medical claims per employee in year one
- $157 lower short-term disability costs
- $68 lower workers’ compensation costs
- $44 lower pharmacy costs
- $1,121 savings in preventable motor-vehicle incidents over four years
- 7.2% lower turnover, with POET employees staying three months longer
Total first-year savings average $797 per employee, which means hiring 1,000 workers can yield nearly $800,000 in savings in the first year alone.
Why This Matters for Leadership
Every dollar saved on healthcare and injury costs strengthens your organization’s ability to invest in talent, innovation, and growth. POET contributes to:
- Lower Group Health Costs
By ensuring employees are physically prepared for their roles, organizations reduce the likelihood of injuries, chronic strain, and high-cost medical claims. Over time, that means lower premiums and fewer unexpected spikes in costs.
- Fewer Workplace Injuries and Claims
Preventing injuries before they occur creates a safer work environment and reduces the frequency and severity of workers’ compensation claims. This has a direct, positive impact on your workers’ compensation costs and long-term premium trends.
- Improved Retention and Workforce Stability
Healthy employees stay longer. When employees can comfortably meet the physical demands of their roles, they are less likely to leave, more likely to succeed, and more likely to contribute to long-term team stability.
- Stronger Productivity and Less Downtime
Injury-related absences cause ripple effects across operations—from overtime and backfill costs to delays in production or service delivery. POET helps minimize these disruptions by identifying risks early and preventing avoidable injuries.
- Better Alignment Across HR, Safety, and Finance
POET supports cross-functional goals across HR, Safety, Finance, and Operations— reducing turnover, lowering incident rates, cutting claims costs, and maintaining productivity through a unified focus on risk reduction.
The Strategic Advantage Moving Forward
Today’s labor market is competitive, and healthcare costs continue to rise. Organizations cannot afford to be reactive with injury management or health plan strategy. Implementing POET is a proactive, scalable solution that strengthens workforce resilience and supports long-term financial health.
For HR leaders looking to balance talent demands with cost pressures, POET offers something unique: a proven, evidence-backed intervention that improves safety, protects employees, and controls costs.
As businesses plan for the year ahead, investing in tools that reduce preventable injuries and drive measurable ROI isn’t just smart strategy, it’s essential for building a healthy, productive, and financially sustainable workforce.
To learn how POET can help your organization reduce healthcare costs and improve workforce safety, contact us today.
Dr. Ben Hoffman is a highly seasoned physician executive with an extensive background in occupational and environmental health, clinical medicine and transportation safety. He has been employed by government agencies, non-profits and multinational corporations including GE, Waste Management, Anheuser-Busch, and DuPont. Dr. Hoffman trained at Yale, Brown, and Mt. Sinai School of Medicine and is board certified in internal medicine, preventive medicine and environmental/occupational health. He has published widely and holds a Professorship (Adjunct) at the University of Texas School of Public Health. He has held professorships at Tufts University Friedman School of Nutrition, Dartmouth School of Medicine, Boston University, and the University of New Hampshire. He is active on numerous committees and boards including Global Health at the National Academy of Sciences/IOM, IPIECA/OGP and former Chair, US DOT/FMCSA Medical Review Board.
