Consider this item from a March 2012 RAND Corp. report:

“The onset of a work-limiting disability sets in motion a seriesof events that, for a growing number of workers, ends in earlyretirement from the labor force. … How workers and their employersadapt to the onset of disability is important.  A policythat requires employers to provide private disability insurancebenefits in the first two years after disability onset may be oneway to encourage firms to take greater steps to rehabilitate andaccommodate disabled workers.”

My first reaction was concern that even though the authorsreference private disability insurance benefits, this is code forsome form of mandated, state-managed coverage akin to the statedisability benefits in a few states, only expanded to a two-yearbenefit period. This concern is amplified by the understanding thatnow that PPACA has set wheels in motion toward making the healthinsurance industry a government enterprise, certain politicians arenow looking for ways to “fix” other aspects of the benefitsindustry. 

But my second reaction is that we in the private disabilitymarket could almost use the report as a sales track for therecommended disability benefit program, which of course existstoday in our industry.  

Our friends at RAND would no doubt love a package that hascoverage for 60 percent or more of an employee's income, benefitsthat are applicable during the two-year period when presumably theydo not expect SSDI to kick in, and can supplement SSDI benefitsafter they do commence. Wouldn't they also add a partial disabilitybenefit that provides a strong return to work incentive, making upfor loss of almost any income while in the process of recovery? Andhow about rehabilitation and retraining services? Of course theywould be offered. We can even provide options to pay additionalbenefits to survivors in the event the disability results in death,or to provide additional benefits when a life threatening illnessis involved.

In keeping with one of the principles behind PPACA, which shouldbe in line with the RAND study's goals, we will of course offerguarantee issue underwriting, even in voluntary plans (subject tosome participation standard or case conditions).

And the products in question may be paid for by either theemployer, or the employee depending on whether the plan is set upas employer paid or voluntary. If the employer decides to offer theplan, and wants prices directly reflecting their own experience, wecan provide them with administrative services or contract to advisethem on claim adjudication so they have the experience of a thirdparty. Benefits could be designed as taxable at the time received,or free of taxation. There could even be a choice regardingtaxation at the employee level. 

If the plan is to be offered to employees as a voluntary option,we can offer an array of enrollment methods, communication andeducation options. 

The RAND study just reinforces the fact that we have a long wayto go in getting out the word on disability income protection. Asan industry, we simply do not get enough credit for what we do inmanaging disability insurance benefits. Our products provide anarray of options that have been deeply thought through and havebeen market tested for years. All we need to do is get the wordout.