The Associated Press reports that UnumProvident, the nation's largest writer of long term disability (LTD) insurance, has sold Genex, a subsidiary, to a private equity firm. Genex has been involved in case management and medical cost containment in LTD and workers compensation. The case management services have included representing disability claimants before the Social Security Administration. Writers of LTD insurance have a huge interest in obtaining Social Security disability benefits for their insureds since LTD policies offset the Social Security disability benefits. UnumProvident reported only a "small net gain" on the sale.
The sale might free Genex to seek the business of individual Social Security disability claimants who need representation, basically entering the retail market for Social Security representation, rather than relying upon the wholesale business provided by LTD carriers, although there is no sign of such an intent or that Genex could be successful in this should they chose to try it. The sale certainly opens the possibility for dramatic change in the market for LTD carrier representation in Social Security disability claims.
The sale might free Genex to seek the business of individual Social Security disability claimants who need representation, basically entering the retail market for Social Security representation, rather than relying upon the wholesale business provided by LTD carriers, although there is no sign of such an intent or that Genex could be successful in this should they chose to try it. The sale certainly opens the possibility for dramatic change in the market for LTD carrier representation in Social Security disability claims.
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