Looking to Lower Your Cost on Group Benefits? Try adding Value! – Part 2

Group benefit plan costs continue to soar year after year. The average annual trend increase on group benefits premium in Canada is approximately 10-20% for disability premium, 12-18% for health premiums, and 6-12% for dental premiums.

In my last article, I addressed one method for lowering extended health and disability claims by adding an employee and family assistance program to your group benefits plan. While employee and family assistance programs add a lot of value, they are only one of four segments that can lower costs on your benefits plan. The next value-added service that I’d like to introduce you to is disability management.

What is Disability Management?

Disability management is a support mechanism for employees and employers which provides them with guidance and expertise as they manage a disability leave.

Within this structure, employees receive support on filling in claim forms which ensures that they see the right medical professionals, receive answers to any questions that may arise, and gain peace of mind so they can focus on maintaining a positive mindset.

Effective disability management assists employers with difficult follow-up conversations with staff; it is also a means of providing support to staff while not infringing on their privacy as prescribed under the privacy act. Employers receive updates on a schedule they choose and are assured that none of their employee’s medical information is revealed to them.

How Does Disability Management Lower Claims?

Claims are lowered through reduced duration of absence; this is accomplished with effective communication and proper follow-up which ensures employees remain connected to the workplace. This minimizes the instance of  the “disability mindset”.

The great thing for employers seeking positive results for their employees is that, incidentally, it lowers claims.

The amount of money paid out under disability management is greatly reduced when the employee sees a doctor right away, visits the appropriate specialist, and negotiates with the insurer to look for meaningful ways to fast-track services. Plus, the sooner the employee is feeling confident about their health, the sooner they will be back at work making a meaningful contribution to the company and society.

What is the “Disability Mindset”?

The “disability mindset” occurs when an ill or injured employee becomes focused on their disabilities, instead of their abilities. The ill or injured employee soon loses confidence in their abilities, and believes they can’t get better.

The statistics for those who develop a disability mindset aren’t very good: if the person remains off work for six months, there is only a 50% chance that they will ever return to work. If the absence lasts for twelve months, there is only an 11% chance that they will ever return to any sort of gainful employment.

Based on the 1,700 clients on the group benefits platform I represent, we have determined that with the successful implementation of a disability management program, these statistics are improved by 25-40%. Based on the simple concept of today’s claims equaling tomorrow’s premium, this reduction in claims and potential claims will be represented appropriately in future renewals.

A Real-Life Disability Management Success Story

A number of years ago, one of our transportation-industry clients had a truck driver who was involved in very serious accident. In this accident, the individual lost his leg. Losing a leg had a major impact on the truck driver’s career – it limited his day-to-day mobility, driving ability, and much more. It would have been easy for someone in this situation to feel completely disabled and resigned to living off of long-term disability benefit payments until retirement. However, our disability management provider got involved in this case right from the start. The provider helped this individual avoid a disability mindset, and supported him as he found another unique ability that he could focus on for his future career.

Three years after the accident, this individual is now one of the executives for the same transportation company that he used to drive for, and he lives a satisfying life. The employer avoided a costly disability claim on the company’s benefits plan, and in turn experienced lower rates because of it.

The Benefits of a Third Party Providing Disability Management Coverage

Third party disability management is beneficial for both employers and employees because it provides a consistent approach to claims management. Both employer and employee are assured that they’re dealing with a neutral third party who can provide impartial, objective views, and employee confidentiality is maintained. A professional disability management provider also addresses complex return to work concerns, and develops a plan for reintroducing the employee into the workplace.

Next Steps

If you are interested in discussing the value of disability management or implementing a solution on your short term or long term disability benefits, please don’t hesitate to connect with me at michael.kettner@kettnerbenefits.com or visit my website at http://www.kettnerbenefits.com/. I would be honoured to introduce you a reputable provider that is right for your organization.