Disability Income Protection

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AHIP Announces New National Education Campaign On The Need For

Disability Income Protection, USA

http://www.medicalnewstoday.com/medicalnews.php?newsid=72599

In the midst of Disability Insurance Awareness Month, America's

Health Insurance Plans (AHIP) announced a new national education

campaign to promote the need for disability income protection and

highlight the value disability insurance provides for workers,

employers, and taxpayers.

As the centerpiece of this campaign, AHIP released two new reports

on disability income insurance, including a new study by academics

at Cornell University on the need to improve the current support

system for workers with disabilities and a survey of group

disability carriers conducted by Milliman, Inc. that examines the

return-to-work programs offered by insurers.

AHIP also launched a new website, www.YourIncomeAtRisk.org, to

highlight these reports and provide additional information about the

need for income protection.

" Many workers today dangerously underestimate their risk of becoming

disabled and are unprepared to weather even a short-term

disability, " said Ignagni, President and CEO of AHIP.

Cornell University Research

A new report prepared by researchers at Cornell University and

Mathematica Policy Research, Income Security for Workers: A Stressed

Support System in Need of Innovation, found that incomes for

disabled workers have declined by almost 15 percent compared to

those without work limitations. Public programs and other income

sources only partially replace lost earnings and many disabled

workers likely experience a further decline in living standards due

an increase in other disability-related expenses.

The report's lead author, Cornell's C. Stapleton, Ph.D., says

that, " Under our current support system for people with

disabilities, those who do not have work limitations are enjoying

the fruits of this country's economic growth, while those who have

work limitations are falling further and further behind. "

According to the report, the public safety net to assist workers

with disabilities is facing an unsustainable rise in costs due to a

long-term exodus of workers with disabilities from employment into

public programs. Moreover, the aging of the baby boom generation,

rising health care costs, and rapid growth in federal expenditures

for entitlement programs will add further pressure to an already

overburdened support system.

The report points out that current public programs fail to

adequately encourage and facilitate self-sufficiency, are highly

fragmented and poorly coordinated. It outlines a series of policy

approaches that would leverage existing private-sector practices and

capabilities to improve the safety net for disabled workers. The

report recommends serious consideration of policy options that would

use targeted incentives or subsidies and private administrative

capabilities to help workers return to work after disability onset

and avoid or delay becoming heavily dependent on SSDI and other

public programs.

Milliman, Inc. Return-to-Work Survey

AHIP also released a new survey of group disability carriers

conducted by Milliman, Inc. on the innovative programs insurers

offer to help workers with disabilities return-to-work.

The survey found substantial investment in rehabilitation and return-

to-work programs by group disability carriers. Annual budgets for

these programs range from $450,000 to more than $10 million. In

2005, private disability insurers spent an average of $3,200 on each

disabled employee receiving rehabilitation and return-to-work

services.

Disability insurers offer a wide range of services aimed at helping

disabled employees return to work. These services may include case

management, worksite modification, financial planning assistance,

and education and training programs.

" Return-to-work programs allow employers to retain experienced

employees while at the same time helping disabled workers gain

financial independence and go on living fulfilling and productive

lives, " said Beal, Principal and Consulting Actuary at

Milliman, Inc.

The survey also demonstrates the success of these programs at

helping claimants return to work. In 2005, return-to-work

represented 29 percent of all claim closures and 42 percent of claim

closures excluding claims closed due to death or at the end of the

maximum benefit period.

Disability Insurance Awareness Month

May has been designated Disability Insurance Awareness Month by the

Life and Health Insurance Foundation for Education (LIFE).

Throughout the month, industry leaders are working together to

promote the need for disability income protection. To learn more

about these efforts, visit www.life-line.org/diam.