Tag Archives: short term disability

How To Reduce Worker’s Compensation Claims (and premiums!)

Industry surveys and research reports are a dime a dozen, but some are worth their weight in gold. Here’s a nugget for you, and it’s free to claim. No digging required.

 

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“A recent survey of more than 600 companies has shown a direct correlation between voluntary accident and disability insurance and a reduction is worker’s comp claims.” -Aflac customer survey

 

A reduction in workers comp claims? How? Why? Let’s take a look at the mechanics of it all, from a policy perspective:

Simply put, it’s a matter of personal responsibility, urgency and ownership. We all know that injuries sometimes go unreported until it’s just too late to ignore them. Minor injuries over the weekend that wait until Monday to hit the reality button. Strains and sprains that may not be work related, but get filed anyway because the aggravation presents itself during the work week. Under no circumstances is the employee intending to defraud or mislead, but the claims do occur because we care about doing right by our employee family.

Imagine a different choice exists for your employees, one where injuries–even minor ones–prompt an immediate doctor visit and filing of supplemental benefits that pay cash quickly for the incident. No hoops to jump through, claims are handled efficiently and promptly (in as little as 4 business days), and the employee receives a cash benefit that is free of strings. When a non-occupational injury occurs, the employee is far less likely to wait for treatment or other medical attention. In this scenario, the employer risk is immediately mitigated and any reporting of the injury removes the association with a workplace event. Because these policies pay claims regardless of the initial injury location, and allow for any medical facility to diagnose and provide care, the employee takes the initiative to seek treatment in a timely manner.

No hoops to jump through, claims are processed in as little as 4 days.

All of this has a secondary benefit for the employer, not just lower worker’s comp claims. The employee has extra money in their budget for immediate use if they miss work. Since follow-up with their doctor is encouraged through the comprehensive claims process, their recovery is not cut short by pressing matters of the pocket. We miss them while they’re gone, but they need to be 100% before things are able to return to normal. Should a true short-term disability present itself, they must be certified by a doctor (thus lowering your risk again) before returning to work. Bills can be paid, stress is lower, and life can return to normal faster.

Don’t offer voluntary short term disability or accident coverage in your workplace or local? You can, and there is never any cost to you to offer them. Why not reduce your risk–and your cost–and offer the most requested supplemental benefits to your employee or union local family?

 

– Tim

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Top Five Reasons That Employers Say No To Short Term Disability:

. . . and why none of those reasons are good enough.

Your employees are asking for better benefits. You are looking at the bottom line and don’t see much in the way of options. Perhaps it is time to explore a different way of looking at things. Here are the five most common objections to offering Short Term Disability, followed by the reasons you can offer it, and should.

1.) It costs too much!ID-100138542

What cost? The right partner company and the right plan administration can provide your company with Short Term Disability that is completely free of fees, charges and costs. With a supplemental plan, like Aflac’s, the premium is 100% paid by the policyholder. You can contribute If you like, but it is not necessary. What about rates? Remember, most employees need only cover their basic bills, for a limited period of time. Rates will surprise you!

2.) Too much administration.

Often even more costly than dollars spent is time. Staff is already stretched to the limit, too many projects to run, who has time for one more hat to wear? With the right partner, administration is completely hands-off for your staff. With the exception of reviewing a claim for accuracy when it occurs, the paperwork, applications, filing and upkeep are all handled by your provider. Far simpler than medical, offering Short Term Disability can be reduced to a few mouse clicks each month.

3.) It takes too much time.

Specifically, your time. As in: “I don’t have enough time!” Next time an employee misses work due to an illness or injury, ask yourself how much time it takes to get behind on the bills, miss a car payment, or have to look for another job. The time it takes to offer short term disability pales in comparison to the effects of going without. It only takes a few minutes to set up, a few minutes more to explain, offer, and write the coverage. The most you’re out is a group meeting and brief follow-up. Time well spent!

4.) The challenges of certification and underwriting.

This is the thing most companies don’t learn about until they take a meeting with the wrong company. There is not one “company mold” you will fit in, but it seems insurers want to put your square peg into their round hole to offer coverage. Once again, with a partner like Aflac, this problem is eliminated altogether. Without strings or hoops, it is possible to offer Short Term Disability coverage to every employee who wants it, and to give them choices for affordability. Using simple guidelines for coverage maximums and time periods, even folks with pre-existing medical conditions can be covered, without a premium penalty! Guaranteed-issue exists in the disability market, and it leaves no employee out.

5.) I don’t see the need! 

“My employees don’t need Short Term Disability!” I hear that one often, and I always ask: “Do you make all your employees’ financial decisions for them?” Not meaning to be flippant, but if and when they are disabled for a time, are you going to pay them while they are at home? Vacation days and sick days run out quickly, assuming they had any to begin with.

Short Term Disability is consistently one of the most requested benefits among wage workers and salaried alike, yet less than 40% of employers offer it at all. What is stopping you and your company? Even just offering additional benefits improves morale and loyalty, whether they choose it or not. At the end of the day, everyone wants to be happy, healthy, and on the job. Missing work happens, but missing mortgage and utility payments doesn’t have to. Ask me how to change the game for you and your employees.

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