Survey of Rehabilitation and Return-to-Work Practices Among U.S. Disability Carriers

Return To Work Survey (PDF)

Private disability insurers possess a unique capacity to manage services and support needed to return employees with disabilities to work. Rehabilitation and return-to-work (RTW) programs made available to private disability insurance claimants provide important benefits to employers and to disabled employees. These programs offered very often play the key role in returning disabled employees to productivity and financial independence.

On behalf of America's Health Insurance Plans (AHIP), Milliman conducted a written and telephone survey of group disability carriers regarding their rehabilitation and RTW practices. Survey results portray the extent of private disability insurance carrier investment in rehabilitation and RTW; identify key industry practices that support return to work; and highlight the factors that are the most crucial to successful return to work.

• For reporting insurers, RTW closures represented 29% of all claim closures in 2005 and 42% of all closures excluding claims closed due to death or at the end of the maximum benefit period.
• Private disability insurers make extensive investments in returning disabled workers to productivity. On average, participating long-term disability (LTD) insurers spent $3,200 on each disabled employee receiving rehabilitation and RTW services. The range of disability insurer investment extended as high as $7,600 per return-to-work client.
• Rehabilitation and RTW programs offer a wide range of services to disabled employees, including:
  • Medical case management,
  • Vocational and employment assessment,
  • Worksite modification,
  • Purchasing adaptive equipment,
  • Business and financial planning,
  • Retraining for a new occupation, and
  • Education expenses.
• A number of provisions in disability insurance policies play a role in supporting claimant rehabilitation and RTW. These provisions include:
  • Work incentive benefits,
  • Rehabilitation benefits,
  • Workplace accommodation benefits, and
  • Child or dependent care benefits during rehabilitation.
• The employer's willingness to participate in a disabled employee's rehabilitation plan is a crucial factor in achieving a successful return to work.