A new study by Avon based Eastbridge Consulting Group shows funding of long-term disability plans has dropped by more than half. Employers are expecting employees to shoulder the cost.
The study found the number of employers indicating that they fully fund long-term disability coverage benefits has decreased from 51 percent in 2009 to only 24 percent in 2014. As employers move away from fully funding products, they are becoming more interested in voluntary long-term disability plans as a way for employees to help fill benefit gaps.
Eastbridge says there is increased interest in the voluntary plans. Its new report, Voluntary Long-Term Disability Plans 2015, explores 19 different voluntary plans. It said in a statement some of the innovations include higher maximums, new benefits options, more hybrid-type products, and plans that can meet the needs of not only the middle and large-employer market, but smaller employers as well.
In 2011, carriers added survivor benefits and cost-of-living adjustments. Since that time, carriers have also added optional benefits such as employee assistance programs, ADL increases and financial counseling.
The study also points out carriers are looking at ways to offer more options at the employee level, although the majority of benefit options are chosen at the employer level. These include more choices of benefit amounts, varying benefit durations and the ability to buy less than the amount for which the employee is eligible.
