Vested Interest - Trends - May 2002 Issue

Cigarettes cost $7 per pack in medical care

The Centers for Disease Control and Prevention says each pack of cigarettes sold in the U.S. costs the nation $7.18 in medical care and lost productivity, costing $3,391 a year for every smoker or $157.7 billion. The agency estimated the nation’s smoking-related medical costs at $3.45 per pack and the job productivity loss because of premature death from smoking amounted to $3.73 per pack, for a total of $7.18 per pack. The average cost of a pack of cigarettes in 1999 was $2.92. The agency also reported that smoking results in about 440,000 deaths a year in the U.S. (AP –April 11, 2002)

Workers’ compensation up at slowest pace in 3 years

Last year’s recession is taking its toll on workers whose wages and benefits rose at the slowest pace in three years in the January-March quarter. The Labor Department reported that its employment cost index, a broad measure of changes in workers’ compensation, rose 0.8 percent in the first three months of this year, down from a seasonally adjusted 1 percent rise in the previous quarter. The costs of benefits, such as health insurance and vacations, outpaced gains in wages and salaries, increasing 1 percent in the first quarter. "Employers are doing what they have to do to preserve profits and growth. Sometimes that means cutting salaries to salvage jobs," said one economist. (AP – April 26, 2002)

Fewer applications for Sept. 11 victims fund than expected

Less than 10 percent of the relatives of people killed in the Sept. 11 attacks have sought compensation through the federal government’s victims fund. The fund’s administrator, Kenneth Feinburg, says the pace is "slower than I had hoped for." The lag is due in part to confusion about the fund’s rules and awards from charities that have bought families time to weigh their options, victims’ groups say. Some people are waiting to see how the early applicants fare before applying, after which they forfeit their right to sue airlines and others. So far, only 434 applications have been received from people who lost a family member or were injured on Sept. 11. Only six lawsuits have been filed. (AP – April 18, 2002)

Court limits disability rights

In a setback for disabled workers, the U.S. Supreme Court ruled those employees are not always entitled to premium assignments intended for more senior workers. Five justices said the 1990 Americans with Disabilities Act does not pre-empt company seniority systems. The Court threw out a lower court’s finding that an employee’s back injury gave him first choice of jobs at US Airways over his more senior co-workers. The justices sent the case back for further review. (MSNBC – April 29, 2002)