Building a Benefits Package That Supports Employees Living with Chronic Conditions

Does Your Benefits Package Support Employees with Chronic Conditions?

July is Chronic Disease Awareness Month, which means there’s no better time to ask the important question: Does your employee benefits package truly support employees who rely on it most? Chronic conditions affect more of your workforce than you may think, so the right employee benefits strategy can make all the difference in your employees’ health, productivity, and retention.

The Growing Impact of Chronic Conditions in the Workforce

A chronic condition is a persistent, long-term health issue (lasting one year or more) that requires ongoing medical attention and limits a person’s ability to perform day-to-day activities. Common examples include diabetes, heart disease, high blood pressure, asthma, autoimmune disorders, arthritis, mental health conditions, and cancer survivorship.

The numbers tell a powerful story. In 2023, 76.4% of U.S. adults – approximately 194 million people – reported having at least one chronic health condition, and more than half (51.4%) reported two or more. According to the CDC, 90% of the nation’s $5.3 trillion in annual health care expenditures go toward caring for people with chronic and mental health conditions. For employers, that means chronic condition support isn’t a niche concern; it is crucial to an effective benefits strategy.

The Hidden Costs of Chronic Conditions in the Workplace

Absenteeism: Employees managing chronic conditions miss more workdays each year than their healthier colleagues. Those absences add up. The CDC Foundation reports that productivity loss due to absenteeism costs U.S. employers $225.8 billion annually, about $1,685 per employee. Beyond the dollars, absences mean delayed services or products, lost output, and heavier workloads for the rest of the team.

Presenteeism is when employees are physically present at work but unable to perform at full capacity. This costs employers more than 6 times as much as absenteeism. Recent research shows presenteeism is exceptionally common among employees with chronic conditions (44.7%) than without (37.5%). The highest rates of presenteeism are found among employees with depression (59.4%), asthma (49.9%), obesity (49.8%), and COPD (48.1%).

Increased healthcare claims. Employees with chronic conditions drive the vast majority of group healthcare spending. A 2025 Employee Benefit Research Institute analysis of more than 13 million commercially insured employees found that the 61% with at least one chronic condition accounted for 92% of all healthcare spending.

Turnover and early retirement. Employees who feel unsupported in managing their health are more likely to reduce hours, change jobs, or exit the workforce entirely. That turnover drains institutional knowledge and increases workloads and replacement costs, also affecting the colleagues left behind.
Burnout and mental health impacts. Prolonged physical pain and lifestyle limitations can trigger a cycle of stress, anxiety, and depression. This weakens immune function, increasing illness and affecting workplace morale and productivity.

What Employees Living with Chronic Conditions Need from Their Benefits Package

Employees managing long-term health issues are looking for benefits that work as hard as they do. Affordable access to comprehensive medical coverage, specialists, medication management, and affordability support are all nonnegotiables. It’s also important to include valuable mental health resources such as EAPs and counseling services, care navigation assistance through benefits advocates or health coaches, and to consider flexible workplace policies and accommodating leave.

Keep in mind that even the strongest offerings can fall short. Often, these benefits go unused and wasted, simply because they are not communicated to employees effectively. Clear, consistent benefits communication is just as important as the benefits themselves.

Benefits Strategies That Support Chronic Condition Management

So how can organizations meet those needs? Expect the most effective employee benefits packages to include disease management programs (such as diabetes management and hypertension monitoring), purposeful wellness programs featuring nutrition education, preventative health initiatives like annual screenings and biometric testing, as well as digital health tools including telehealth, patient monitoring, virtual therapy, and chronic care management.

These strategies work because they shift care and cost from reactive to proactive. Catching health issues early and keeping conditions under control helps prevent the costly complications and hospitalizations that come when chronic disease goes haywire. They also remove common barriers to care, making it easier for employees to stay consistent with treatment plans and condition management.

How Supporting Chronic Conditions Benefits Employers

Supporting employees with chronic conditions isn’t just the right thing to do; it is a smart investment. A RAND Corporation study found that disease management programs return $3.80 for every dollar invested, driven largely by a nearly 30% reduction in hospital admissions. Employers also see improved productivity from better symptom management, higher retention as a result of higher job satisfaction, and stronger recruitment thanks to a more comprehensive and more competitive employee benefits offering.

Questions to Ask During Benefits Strategy Planning

• Are our employees aware of the chronic condition resources available to them?
• Are our disease management programs actually being utilized?
• Do our current plans make medications and care for chronic conditions affordable?
• Is mental health support integrated into our chronic care resources?
• Are we measuring the impact of our wellness initiatives?

Plan for a Healthier Workforce

Building an employee benefits package that supports employees living with chronic conditions takes thoughtful planning. VSMG helps Arizona public sector employees evaluate current benefits offerings, identify gaps in chronic condition support, implement wellness and disease management strategies, and use data to improve employee outcomes while controlling costs.

Contact VSMG today to learn how our independent consulting approach can help your organization create a benefits program that supports both workforce well-being and your organizational goals.

About VSMG

Built by and for Arizona public sector employers, VSMG is a leading employee benefits consultant, dedicated exclusively to serving the needs of Arizona’s school districts, municipalities, and other public entities for over 21 years. We are the largest provider of employee benefits consulting services to Arizona school districts, serving over 40,000 benefit-eligible employee lives, and the only nonprofit consultant offering these services.