EMPLOYERS, EMPLOYEES COULD BE HURT BY DISABILITY INCOME INSURANCE CHANGES

Proposed changes in the regulation of disability income insurance in California could significantly increase the cost of coverage and discourage some injured employees from returning to work, according to a study released by America’s Health Insurance Plans.

The study, which was prepared by actuarial consulting firm Milliman Inc., said, “The purchasers of group and individual disability income (DI) insurance, both employers and individuals, will be the ones most affected by the Department’s proposed policy language changes.”

Specifically, the Milliman analysis said the proposed changes would:

“Disability insurance is a crucial part of the financial security of millions of working Californians. We commissioned this study to give decision-makers better information on the potential impacts of the regulatory changes proposed by the Department of Insurance,” said Karen Ignagni, president and CEO of AHIP, a national trade association representing nearly 1,300 members providing health benefits, including disability income insurance.

The Milliman report is available online: http://www.ahip.org/content/default.aspx?docid=13557.