Ace the Certified Disability Management Specialist Exam 2025 – Unlock Your Path to CDMS Success!

In evaluating the financial implications of disability management, indirect costs typically refer to expenses not directly tied to an employee's disability but nevertheless impact the organization. Medical coverage is generally seen as a direct cost because it pertains specifically to the treatment and rehabilitation of the employee affected by a disability. This cost is directly linked to the care of the employee and is often viewed as a primary obligation of the employer.

On the other hand, recruitment costs, lost productivity costs, and overtime payments to other workers are all considered indirect costs. Recruitment costs arise when an organization needs to hire temporary or replacement staff due to someone's absence. Lost productivity costs are associated with the loss of efficiency and output when an employee is unable to perform their job. Overtime payments to other workers can occur as a result of needing additional coverage to compensate for an absent employee or manage workload imbalances. Therefore, medical coverage stands apart as it is a direct expense related to the healthcare of the employee rather than a cost stemming from the broader impacts of their absence.