Background
Numerous events have influenced the ongoing development of the Disability Income Insurance market in the United States. The roots of this industry can be traced to the early 19th century as our nation became more industrialized and its economy expanded.
In addition to the economic expansion, attitudes also began to shift in the general population as they advocated for new disability services from the government. The most notable change came in 1935 with the creation of Social Security within the New Deal government program expansion as a result of the Great Depression. Another notable change occurred in 1956 with the addition of Social Security Disability Income. This program implemented disability benefits for individuals who had worked before becoming disabled to the point of no longer having the ability to work at substantial levels.
Private insurance markets have also adapted to new consumer attitudes and demands. As living standards increase, this type of coverage is widely believed to be the most important. High-income professionals, heads of household, and business owners recognize the potential loss of income that would occur in the event of a disability. Additionally, consumers realize that existing governmental programs are just not enough to maintain their current living standards.
While disability insurers have been providing these services for decades, the role of disability insurers has expanded significantly in recent years for several reasons according to a recent report by America’s Health Insurance Plans:
- Employers are struggling to address the challenges of chronic disease. Even as they search for new and better ways to help employees avoid chronic and disabling illnesses, employers need to address the growing impact that chronic conditions are having in the workplace. Medical advances have allowed people with conditions such as cancer, traumatic injuries, and multiple sclerosis to return to work, remain productive, and enjoy successful careers.
- Employers seeking to keep valued employees with chronic diseases often need help identifying the right mix of accommodations to create win-win work environments. The current economic downturn is forcing employers and employees to do more with less. Today's economy has forced many employers to downsize. Workers who remain on the job are being asked to do more than ever. And at the same time, employees often face competing demands, such as needing to take time off to care for aging parents or sick family members.
- Employers are seeking new and more effective ways to help workers address their personal and family needs while avoiding unnecessarily long absences and helping them remain productive on the job. The recession has led millions of baby boomers to delay retirement, thus creating a workforce that is older than ever before.
In the AHIP report, a medical director of one large disability insurer recently noted, “There has been a slow demographic creep upwards in terms of retirement age. People now can't count on retiring at age 65, and there will be a radical shift toward people working later in life.
At the same time, older workers' skills and experience are valuable in the workplace. Employers are asking how best to capitalize on older workers' strengths so that they can remain productive team members for as long as they wish to continue working.
Similarly, companies offering health care and disability insurance support services are integrating and coordinating these services so that workers receive the most effective care for their chronic conditions and can return to work as soon as possible.
Example: CIGNA
Employees who have CIGNA's health and disability coverage can access CIGNA's Disability and HealthCare ConnectR program. Through the program, employees can work with nurse case managers who act as health advocates. Case managers help workers navigate the health care system and access all of the health care, disease management, and disability-related services they need. For example, case managers can guide workers with disabling back injuries to CIGNA's back pain management program to help them find the right mix of strategies (such as exercise and medications) to reduce pain and restore mobility.
When employees feel ready to return to work, CIGNA's vocational rehabilitation counselors coordinate with employers to develop return-to-work plans suited to employees' needs and abilities. Such plans often include modified work schedules that help employees transition gradually from part-time to full-time work; use of ergonomic work stations and chairs; and changes to physical requirements (such as eliminating heavy lifting).
Example: Aetna:
Aetna's Integrated Health and Disability (IHD) program is available to employees with Aetna's disability and health coverage. Each employee receiving disability benefits has a case manager who coordinates his or her health care, behavioral health, and pharmacy coverage. Case managers communicate regularly with employees and with members of their health care teams to identify needs and ensure that they are addressed in a timely manner. Aetna's information technology innovations make it possible-with employees' consent for health and disability team members to share information about employees’ health and functional status on a real-time basis so they can return to work as soon as possible. In addition, case managers consult with physicians about including return-to-work considerations in patients' treatment plans.
Summary
Disability Income Insurance, with numerous changes proposed currently for both Medicare and Medicaid in the 2012 budget and because of the Affordable Care Act, may undergo a transformation itself in the next few years. These are definitely dynamic times for both traditional health insurance plans, and those like 'DI' which are largely, and inaccurately, seen as just a sideline player. Perhaps with these dynamic changes, DI will become a star player for many employers, are you as an agent/ broker ready to step up your game and take advantage of the opportunity?
Specific product information courtesy of America’s Health Insurance Plans.
