When contemplating disability insurance, consider integration with the employer's medical plan, which can help control costs for both the employer and employee.
The health implications of the pandemic – both mental and physical – caused many employees and employers to revisit the value of their benefits packages. What had been a possibility of not being able to afford the general cost of living in the event of a qualifying disabling condition became a reality for the many who lost their income because they could not work due to COVID-19-related illness. These concerns around financial well-being remain with a predicted post-COVID wave of disability from chronic conditions that surfaced during the pandemic.
New studies show employers have already paid nearly $11 billion in disability benefits related to COVID-19, yet many employers still do not offer disability insurance. According to data from the U.S. Bureau of Labor Statistics, short-term disability insurance was available to only 40% of civilian workers in March 2020, and long-term disability insurance was available to 35%.
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Lack of coverage and little knowledge surrounding disability benefits is likely to be a major issue for young employees, and especially COVID long-haulers, as a qualifying disabling event could threaten their financial well-being if their income is not protected and they face costly medical care.
With the anticipated influx of disability claims due to COVID-19, now is an opportune time for employers to remind employees, regardless of their age, about the value of disability coverage to safeguard their financial wellness.
Choosing a disability plan
There are two types of disability insurance and varied options to pay for premiums. There is short-term disability insurance, providing income replacement for employees experiencing a qualifying disability for a few weeks or months, and long-term disability insurance, providing benefits for months or years, and sometimes until retirement.
Employers might not provide both short-term and long-term disability yet offering both provides employees with the most protection and peace of mind. Since budgets influence the type of benefits offered, there are a few different ways employers can include disability insurance in their benefits packages. If fully covering the premium isn't possible, employers can either choose to cover part of the premium and have the rest covered by the employee through payroll deductions, or they can offer a voluntary disability plan in which employees pay the full premium also through payroll deductions.
Another consideration when contemplating disability insurance is integration with the employer's medical plan, which can help control costs for both the employer and employee. This also improves the disability experience for employees with qualifying disabling illnesses or injuries by connecting them to care in simpler, more effective, and more affordable ways.
With integrated disability and medical plans, employees receive more personalized guidance and comprehensive care, with disability case managers and health coaches collaborating to ensure an employee who experiences a disabling illness or injury receives the right care, at the right time, and that all benefit programs included in their plans are connected for a truly transformative impact. The real-time connections combined with personalized guidance can be especially helpful for employees who have an underlying health issue that can be potentially aggravated by a COVID-19 infection or experience new health complications post-infection.
The impact on younger employees
Enrolling in disability insurance has always been recommended to younger employees to protect against loss of income due to pregnancy, injury, or illness, but the pandemic highlighted disability insurance's relevance due to the long-term impacts of COVID-19. As this article in the Harvard Gazette outlines, those who are considered "COVID long-haulers," meaning they experienced symptoms of the disease long after initial infection, tend to be younger and can take anywhere from three to 12 months to fully recover. They can be compromised by fatigue, breathing complications, memory loss and more.
By offering integrated disability and medical benefits and encouraging younger employees to enroll, employers can better support the total personal care of all of their employees, including mental, physical, and financial health. Disability benefits protect young employees' income while they are unable to work due to a qualifying disability, which can help with the cost of living and medical expenses.
Additionally, when employees have access to integrated disability benefits, they benefit from coordination between claims managers and care management teams. This collaborative expertise can help ensure employees receive the care and resources needed to improve their health so they can get back to work as safely and quickly as possible. This coordination can help them proactively monitor and manage their chronic health conditions, enabling them to resume their regular daily life sooner.
Encourage enrollment for peace of mind
While most younger employees rarely anticipate experiencing a qualifying disabling condition that could keep them out of work, the pandemic has given everyone a reminder not to take their health for granted and to properly protect themselves and their families' financial wellness. By offering and promoting comprehensive disability benefits, employers help give employees the financial security they need and demonstrate that their employees' overall well-being is a priority. Implementing integrated disability benefits can help control costs, increase value, and improve outcomes for employees – and employers. It also gives employees and employers peace of mind knowing they have the confidence of care for every moment of health.
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