Do your employees know what disability benefits are available to them through their employment? Recent studies have found employees seem confused or unaware of the impact disability could have on them and their families.

The first problem is that many employees focus on accidents and injuries as the major cause of disabilities, and are unaware of the actual leading causes. They believe as long as they are working in a safe environment, they have nothing to worry about.

However, the real leading causes for short-term disability are pregnancy and musculo-skeletal problems (back pain, arthritis) and for long-term disability are cancer and musculo-skeletal problems. In both instances, accident and injury are responsible for only a small percentage of disabilities.

Second, employees do not realize the economic instability associated with disability and believe incorrectly that their income will be replaced. Not necessarily through insurance, but by other sources that, in reality, will be no help at all - Unemployment, Social Security, health insurance, and Workers Compensation.

Most are not aware that they can purchase individual policies outside of work that will also supplement their income.

Do you offer disability as a benefit to your employees? Are they aware of when and how it would provide coverage for them? This could be a good time to check in with your employees and see what they know.


With several major brand name drugs due to lose patent protection over the next few years, pharmacy benefit plans that encourage generic use over brand name use will be positioned to save significantly on costs.

For immediate cost savings, you might try reducing copays for generic drugs while raising copays for brand names by the same amount.

Health care costs have caught up to paid leave. Health insurance costs skyrocketed by 28% since 1991, causing health benefit expenditures in 2005 to equal those for paid leave, which grew by only 5% since 1991. Source: GAO.gov


Just 4% of employees and dependents account for 50% of total medical costs in any given organization, a recent study reports. The 4% make such an impact due to catastrophic and/or chronic diseases. The healthiest group, 72% of participants, account for just 11% of health care spending.


How much time would be saved if your employees could go to one central source for benefits questions and assistance with enrollment? Employee benefits portals are a smart solution for handling employee inquiries and improving internal communications.

Shepard Insurance Group has developed its own web-based portal. Visit the BenefitsNow website at www.YourBenefitsNow.com.  


Volume 4/Spring 2006/Benefit Matters is a publication of Shepard Insurance Group
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