Study: combining insurances can save time and money.

Employers that use the same insurer to provide short-term disability and medical coverages save more money, and get their disabled workers back on the job sooner, according to a study by Cigna.

The study found that many of the main drivers of cost for medical insurance also drive the costs of short-term disability. The No. 1 driver of disability and medical costs is musculoskeletal claims, representing 22% of claims for short-term disability and 27% of the costs. On the medical side, musculoskeletal represent 21% of claims and 18% of the costs.

"We knew intuitively that there was a strong connection between medical and disability claims. But we were surprised to see the money the employer could save if they had the same short-term disability provider and medical insurer," said Jay Menario, senior vice president of marketing for Cigna Group.

The medical payments related to disability claims dwarf the cost of medical benefits associated with the claim. On average, the total direct disability and medical coverage cost for a short-term disability is $13,094. Of this, $2,444 goes to short-term disability benefits and $10,649 goes toward paying for medical care.

By looking at 60,000 short-term disability claims, Cigna found disability durations were 12% shorter, an average difference of seven days, for employees covered by both Cigna short-term disability and major medical. For an employer with 3,000 employees, this could equate to $100,000 to $200,000 in direct disability cost savings per year, and up to $500,000 in indirect costs, such as lost productivity and the cost of hiring and training temporary workers.

More than a quarter, or 26%, of medical episodes leading to a disability claim stem from chronic health issues such as heart disease, diabetes and low-back pain. While only representing one in four short-term disability claims, these types of claims account for 56% of short-term disability medical costs, and many could be prevented with proper treatment.

Almost half, or 45%, of the expense of treating depression and other mental health conditions stem from people who suffer from other disabilities, such as low-back pain or heart disease. "This means health and disability professionals must be prepared to take a more holistic view of an individual's disability, recognize the likelihood of depression, disabling stress or another mental health factor as a hurdle in overcoming disability, and understand when and how treatment is needed," Barton Margoshes, M.D., chief medical officer for Cigna Group Insurance, said in a statement.

As a result of the study, Cigna said it will offer discounts of 3% to 7% for employers who purchase short-term and long-term disability coverages in connection with medical coverage.