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Paid Sick Days: Healthier Families, More Than $1 Billion in Savings

| Nov 17, 2011

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Cross-posted from National Partnership for Women & Families and MomsRising.

Health reform has underscored the imperative to increase access to health care, improve quality and reduce costs. According to a thought-provoking new report released by the Institute for Women’s Policy Research (IWPR) this week, paid sick days can — and should — play a significant role in reaching these goals.

Paid Sick Days and Health: Cost Savings from Reduced Emergency Room Visits finds that, regardless of workers’ access to health insurance, there are undeniable connections between the ways in which private sector workers use the health care system and whether they have access to paid sick days. And these connections can result in significant costs for working families’ health, their financial security and the effectiveness of the system overall.

Currently, more than 40 percent of the private sector workforce — and more than 80 percent of the lowest-wage workers — don’t have paid sick days. These workers often can’t afford to lose income or risk their jobs by taking unpaid time off to get the medical care they need. They are left with no choice but to use expensive emergency rooms to get primary care for themselves or their families during non-work hours, or to delay getting care until their health problems worsen and they need care for more severe conditions — at even greater costs.

IWPR’s findings demonstrate that the barrier that prevents workers without paid sick days from getting timely, affordable care is a huge and costly problem for workers, their families and our nation. According to the report, workers with paid sick days are less likely than those without to use hospital emergency rooms or to delay care for themselves or family members. They also report better health. The analysis reveals that if all workers had paid sick days, 1.3 million emergency room visits could be prevented each year. The country would save an astounding $1.1 billion in health care costs annually. And more than $500 million of these savings would be to public programs like the Children’s Health Insurance Program, Medicare and Medicaid.

Emergency room use is a significant source of rising health care costs, according to the report. In fact, emergency room use has risen 30 percent in the last decade. Controlling these costs could benefit our health care system in important ways. And, as IWPR concludes, increasing workers’ access to paid sick days is a “low-cost route to reining in emergency department costs — while simultaneously improving health.” In other words, paid sick days are a win-win.

With this new report, IWPR has pinpointed a modest, common sense way to increase access to health care and reduce costs. Congress should take note of the new data and the growing support for paid sick days in states and cities across the country and move quickly to pass the Healthy Families Act. By doing so, it will increase access to paid sick days, promote the health of working families and save money for taxpayers and the government. There couldn’t be a better time to take this essential step.

Read the full Institute for Women’s Policy Research report here.

vshabo@nationalpartnership.org is the director of work and family programs at the National Partnership for Women & Families.

About the Author

Vicki Shabo

Vicki Shabo

Vicki Shabo is vice president at the National Partnership for Women & Families and is one of the nation's leading experts on paid family and medical leave, paid sick days and the workplace policy advocacy landscape. She previously served for more than four years as the organization's director of work and family programs. Shabo is responsible for the strategic direction of the National Partnership’s work to promote fair and family friendly workplaces and leads the organization’s work on paid family and medical leave, paid sick days, expansion and enforcement of the Family and Medical Leave Act, workplace flexibility, fair pay and pregnancy discrimination. She serves as a contact on workplace policy issues for key national allies, researchers, businesses and state and local advocates and has been quoted in the New York Times, Washington Post, Associated Press, USA Today, CNN and MSNBC, among other outlets.

Shabo brings a unique background in law and politics to her work: Prior to joining the National Partnership in 2010, she practiced law in the litigation department at WilmerHale, a large international law firm. Before embarking on a legal career, she worked with both Celinda Lake and Harrison Hickman, serving as a pollster and political strategist to political candidates, ballot campaigns, advocacy organizations and media outlets. Through this work, she developed research and communications expertise on issues of particular concern to women. Shabo's earlier professional experience includes a stint with the U.S. House of Representatives Judiciary Committee.

Shabo graduated summa cum laude with a Bachelor of Arts in politics and American studies from Pomona College, and holds a Master of Arts in political science from the University of Michigan. She earned her law degree with high honors from the University of North Carolina, where she served as editor in chief of the North Carolina Law Review. After law school, she clerked for the Honorable Michael R. Murphy on the U.S. Court of Appeals for the Tenth Circuit in Salt Lake City.