Over $8 billion dollars in long-term disability insurance claim payments was paid to disabled workers in 2009, a 2.9 percent increase from 2008, a recent survey found. The 2010 Council for Disability Awareness Long-Term Disability Claims Review also found that unlike most other industries, disability claims have seen little change as result of the economic downturn, even while the number of lives insured fell 2.2 percent from 2008 to 2009.
Over half of companies said they saw no meaningful change in the duration of disability claims, although 41 percent said they noticed an increase in claim duration.
Ninety-five percent of disability claims reported to the CDA were not work-related, the study found. Over 31 percent of claimants weren't eligible to receive disability benefits from Social Security.
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Boomers and women were far more likely to file for benefits than other demographics. Thirty-five percent of people between ages 50 and 59 filed new claims for benefits in 2009, compared with less than 25 percent for any other age group. Just over 40 percent of men filed for benefits in 2009, compared with nearly 60 percent of women.
The leading cause of disability is still musculoskeletal and connective tissue disorders. Over 26 percent of new claims and 28.5 percent of existing claims are for neck and back pain or joint, muscle and tendon disorders. Cancer is the second leading cause of new claims (15.3 percent). Cardiovascular problems are the third leading cause of new claims, and increased slightly after three years of declines.
When asked about their predictions for the next 12 months, half of companies said they don't expect any significant impact. Forty-four percent of respondents said they expect an increase in incidence, although the survey notes that no company indicated a significant spike. The most frequently mentioned concerns are unsurprising: uncertainty in the economy; the regulatory environment; and the residual impact of health care reform.
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