Policy and Regulation News

How Paid Sick Leave Could Reduce Patients’ Financial Burden

The study illustrates that paid sick leave is directly related to overall financial burden and job retention among cancer patients.

By Vera Gruessner

- One of the most looming issues within the healthcare industry has been the medical debt that many citizens around the nation incur if they are struck with a serious acute or chronic illness. A report published in the Journal of the American Medical Association (JAMA) illustrates how paid sick leave could actually make a big impact on reducing financial burdens and allowing employees to retain their jobs despite having a severe medical condition.

Paid Medical Leave

Essentially, paid sick leave would allow patients who have cancer or other serious medical conditions to avoid taking unpaid time off from work. The problem at hand is that 40 percent of employees around the nation are not guaranteed paid sick leave and this is not a requirement under the Affordable Care Act nor the Family Medical Leave Act.

Researchers from the University of Michigan conducted a study in which surveys and telephone calls were administered to subjects with colorectal cancer between August 2011 and March 2013. The phone calls and surveys focused on job retention and financial burden among the cancer patients.

Additionally, the researchers took a look at which patients were employed and which ones were offered paid sick leave. The results show that 35 percent of those diagnosed with colorectal cancer within the study had an annual household income of $50,000 or less and 56 percent had the opportunity to take paid sick leave.

The financial burdens in the study are clear – 28 percent of those without paid sick leave borrowed money from friends and family while only 18 percent of respondents with it reported relying on others for financial assistance. Nearly 30 percent of those without paid sick leave could not afford their credit card payments while a mere 14 percent of respondents on the other side of the fence had trouble paying off their credit cards.

A total of 50 percent of polled patients and 57 percent of those surveyed with colorectal cancer who didn’t have access to paid sick leave reduced their spending on food and clothes and decreased their spending habits on recreational activities, respectively. Those that did have access to paid medical leave had significantly lower statistics when it comes to their spending habits.

The results also showed that 55 percent of those surveyed were able to retain their jobs. However, the study found that those who retained their jobs were more likely to be Caucasian, married, highly educated males with private health insurance, access to paid sick leave, and a higher annual income. The study illustrates that paid sick leave is directly related to overall financial burden and job retention among cancer patients.

“Paid sick leave was associated with a greater likelihood of job retention and reduced personal financial burden,” the researchers wrote in the published paper. “Lack of paid sick leave may be a proxy for low-wage jobs or low socioeconomic status. However, our data shows that the association with paid sick leave was robust to education, income, and health insurance.”

However, the movement for expanding paid medical leave is growing around the nation. The National Partnership for Women & Families reported in July 2015 that four states, the District of Columbia, and 18 counties around the country will be implementing laws in favor of paid medical leave.

It wasn’t until 2011 when the state of Connecticut became the first to institute a law requiring paid sick days. Seattle, New York City, and Jersey City soon followed. As the country realizes the benefits of paid sick leave in relieving medical debt and potentially strengthening the economy, new legislation pushing for paid days off in case of medical emergency could spread among all 50 states.

“In 2013, Portland, Oregon, New York City and Jersey City, N.J., adopted paid sick days standards. Newark, N.J., followed in early 2014, followed by Eugene, Oregon, San Diego, the state of California, and the New Jersey cities of Passaic, Paterson, East Orange and Irvington,” the National Partnership for Women & Families outlined in their brief.

“In November 2014, paid sick days ballot measures passed with overwhelming voter support in the commonwealth of Massachusetts, Oakland, California, and the New Jersey cities of Montclair and Trenton. In 2015, city councils have adopted paid sick days laws in Tacoma, Washington, Philadelphia, Pennsylvania, and Bloomfield, N.J., and Chicago voters overwhelmingly approved a nonbinding referendum in favor of paid sick days. Most recently, in June 2015, Oregon became the fourth state in the nation to pass a paid sick days law, and Emeryville, California, passed a law expanding upon California’s statewide paid sick days law. In July, Montgomery County, Maryland, became the first county to establish a paid sick days standard.”

For example, President Barack Obama revealed an executive order in September 2015 that would mandate federal contractors to provide seven days of paid sick leave among their employees, according to The Washington Post. Obama announced this plan to help as many as 300,000 employees at a Labor Day speech in Boston.

“Right now, you have parents who have to choose between losing income or staying home with a sick child,” Obama said during his speech.

The employees would be eligible for this paid time off whether they were dealing with an illness or caring for a family member diagnosed with a medical condition. The executive order is expected to take effect in early 2017.

With the support of the Obama administration and further research into the benefits of paid sick leave, more patients with serious illnesses may be able to have guaranteed paid days off in the future.