10 trends in disability, absence management benefits
October 30, 2014 3:06 AM
Here are 10 disability insurance and absence management trends, based on a survey Prudential Group Insurance conducted in partnership with Greenwald & Associates.
[Image: Fotolia]
[Image: Fotolia]
1. Disability insurance increases in employer use.
James V. Gemus, senior vice president of products at Prudential Group Insurance, says disability and absence management is a really important area for employers. Prudential research finds that both short-term and long-term disability insurance has increased to over 80% among employers.
[Image: Prudential]
[Image: Prudential]
2. Outsourcing disability insurance becomes more common.
Prudential's research finds that three out of four employers outsource short-term disability and four out of five say their long-term disability benefits are also outsourced.
There has been a pretty strong trend towards companies getting help on the management of these benefits, says Gemus.
[Image: Prudential]
There has been a pretty strong trend towards companies getting help on the management of these benefits, says Gemus.
[Image: Prudential]
3. Absence management outsourcing is growing.
Employer absence management programs typically involve an integration of disability with other attendance and leave programs. Over the next three years, Prudential finds that outsourcing of absence management is expected to increase by 6%. Also, larger employers are more likely to outsource down the line.
There is a growing number of companies that are actually looking at insurance companies and third-party administrators to help with [management of these benefits], says Gemus. We think thats right, but you have to be careful as to how you pick the providers that you work with and make sure they have the same vision and goals that you have.
[Image: Fotolia]
There is a growing number of companies that are actually looking at insurance companies and third-party administrators to help with [management of these benefits], says Gemus. We think thats right, but you have to be careful as to how you pick the providers that you work with and make sure they have the same vision and goals that you have.
[Image: Fotolia]
4. Service and billing.
While employers agree that easing the administrative burden is key when selecting a disability benefits vendor, 92% of companies want high quality service and 82% want accurate billing.
This is an important area and it does really take up a large cost for employers, Gemus says. I think the good news is there are many things that employers can do here to affect these outcomes.
[Image: Fotolia]
This is an important area and it does really take up a large cost for employers, Gemus says. I think the good news is there are many things that employers can do here to affect these outcomes.
[Image: Fotolia]
5. Large employers more likely to self-insure STD.
Three out of four employers elected for insured short-term disability benefits rather than self-insuring, But, larger employers were more likely to self-insure these benefits, Prudential finds.
[Image: Fotolia]
[Image: Fotolia]
6. Insurance carriers are the outsourcing partner of choice.
More than half of employers surveyed typically choose to work with an insurance carrier rather than third-party administrators, the study states.
[Image: Fotolia]
[Image: Fotolia]
7. Disability benefits are moving into the voluntary arena.
While employers typically contribute to their employees short-term and long-term disability benefits, 15% say they expect to switch to voluntary coverage over the next few years.
Gemus explains that employers should incorporate an annual review of these benefits going forward. He notes that companies should look at plan outcome data, and service results to make sure that vendors are meeting employer expectations.
[Image: Fotolia]
Gemus explains that employers should incorporate an annual review of these benefits going forward. He notes that companies should look at plan outcome data, and service results to make sure that vendors are meeting employer expectations.
[Image: Fotolia]
8. Return-to-work programs are missing the mark.
Despite advances in disability and absence management, return-to-work programs are ineffective, at least according to employers Prudential surveyed. One-third gave their return-to-work program a C grade. The grading improves as employer size grows, however.
[Image: Prudential]
[Image: Prudential]
9. Return-to-work programs become more prevalent.
Approximately 48% of employers have or are planning to incorporate a return-to-work program in the near future. Also, return-to-work programs are seen more at larger employers.
[Image: Fotolia]
[Image: Fotolia]
10. Partnerships are needed for return-to-work to work programs.
Return-to-work program offerings have to be a partnership among internal and outside resources in order to function properly. Roughly three out of four employers use this model to administer their programs, Prudential states.
By working these plans this way and say focusing on things like return-to-work, they are lowering their cost but also improving their productivity and adding value for their employees, Gemus explains.
[Image: Prudential]
By working these plans this way and say focusing on things like return-to-work, they are lowering their cost but also improving their productivity and adding value for their employees, Gemus explains.
[Image: Prudential]
