Jun 15, 2015

Insurance Companies Monitoring Social Security Disability Debate

     Companies which write Long Term Disability (LTD) insurance policies are paying attention to the debate over what to do about the impending shortfall in Social Security's Disability Insurance Trust Fund. LTD benefits are reduced, or offset, by the amount of Disability Insurance Benefits. Anything that reduces the Disability Insurance Benefits increases the amount paid by LTD insurance companies. The companies are making sure that the language in their policies protects them should there by any major change in Social Security disability benefits. Some insurance companies would like to make LTD insurance mandatory or, at least, make it an "opt out" for employees. Some companies would like to take over claims adjudication for Social Security.

4 comments:

Anonymous said...

There are many stakeholders in the SSD program outside of the claimants and their representatives. Hopefully large insurance companies who write LTD policies might be able to get the ear of Congressional Republicans and help blunt any large scale cuts in the program. The magic phrase, "bad for business" from the insurance companies might help the cause where pleas from the disability community might otherwise be ignored.

Anonymous said...

ay ya ya, and @ the 3:16 marker, the LTD's want mandated LTD? Isn't that what social security is for?

Anonymous said...

I said twice on the board that this was going to happen. When you get into insurance company's back pocket they will tell congress what is going to happen, and the funds will be there, I grantee it will happen.

Emily Smith said...

This was an interesting post about social security disability and insurance. It makes sense that companies with disability insurance are paying attention to the social security disability debate. Their business is to know and be up to date about that stuff. I wonder if this debate will end positively.
Emily Smith | http://www.socialsecurityesq.com