Private disability insurers' retun-to-work programs can save the federal government $25 billion over the next decade. That's according to a report issued today by Charles River Associates, in partnership with America's Health Insurance Plans (AHIP).
Using publicly available information, the study reveals that there have been at least 65,000 employees at any point in time in recent years that would have been receiving Social Security Disability Insurance (SSDI) -- and, likely, other federal benefits -- if they had not been covered by group long-term disability (GLTD) insurance. The report also claims that the annual total of avoided SSDI and other federal benefits is approximately $30,000 per year for affected individuals.
With this, Charles River Associates concludes that GLTD insurance is saving federal programs at least $2 billion per year, almost one half of which is is due to lower SSDI benefit payments ($900 million per year). "Given current demographic and inflation projections, GLTD insurance as currently configured will save the federal treasury at least $25 billion over the next 10 years; at least $10 billion in SSDI benefits and approximately $15 billion in other federal programs," the report states.
Beyond the reduction in federal expenditures, the report states that the government would also benefit from higher tax revenues as workers with disabilities return to work. The benefits are not relegated to only the federal government, however. Some could say it benefits employers, who regain productive workers, and that worker and his or her family regain a higher standard of living.
The following infographic was produced by Charles River Associates and AHIP.
In America, employees can essentially obrtain help from a number of federal and state benefit programs if they become disabled. The primary benefit is usually derived from Social Security Disability Insurance. Private GLTD insurers provide or arrange for assistance to their claimants in applying for SSDI benefits when needed.