Expanding Disability Income Insurance Would Help Preserve Social Security Disability Program, Provide Critical Protection For Millions Of Workers

posted by Clare Krusing

on August 4, 2015

For Immediate Release

Latest Proposal Included As Part of McCrery-Pomeroy SSDI Solutions Initiative

Washington, D.C.  With the Social Security Disability Insurance (SSDI) program facing the threat of insolvency next year, a new analysis from Charles River Associates finds that increasing enrollment in private group disability income coverage would create savings within the SSDI program and extend critical disability support services to millions of workers. Expanding disability income insurance could save the federal government an estimated $25 billion over the next decade. Moreover, each 10 percent increase in enrollment would provide critical benefits for up to 20,000 – 25,000 more workers and accrue additional $2.8 billion – $3.5 billion in cost savings over the next 10 years, according to the CRA analysis.

The latest report, commissioned by America’s Health Insurance Plans (AHIP) and the American Council of Life Insurers (ACLI), is one of the key proposals under consideration as part of the McCrery-Pomeroy SSDI Solutions Initiative. The Initiative is convening today to discuss these proposals as part of a broader effort to strengthen and preserve the SSDI program.

Disability insurance helps protect individuals and their families from financial hardship when illness or injury prevents them from earning a living.  Currently, one third of American workers — more than 40 million employees — are enrolled in private disability coverage. Disability insurance replaces a significant portion of income for workers who become disabled, allowing them and their families to continue meeting their household expenses and protecting them from taking on additional debt or losing their assets.

Key to this latest cost-savings proposal is the benefit of disability insurers’ return-to-work programs. These initiatives successfully help tens of thousands of individuals transition back to the workplace every year. By helping these employees return to work, these programs also are reducing the demand for SSDI benefits and other public services.

This proposal builds on previous research that found significant cost savings to the federal government, specifically the SSDI program, with the expansion of private disability insurance.

For more information on the report and its proposed recommendations, click here. For information on the SSDI Solutions Initiative, click here.


Providing Health Benefits for Over 200 Million Americans.

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