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Companies Offering Accident, Disability Insurance See Fewer Workers’ Comp Claims

A new survey found that 42 percent of all companies providing access to voluntary accident and disability insurance reported declines in their workers’ compensation claims…

COLUMBUS, Ga., April 2, 2014/PRNewswire/ — A new survey released by Aflac (NYSE: AFL), the leading provider of voluntary insurance in the United States, found that 42 percent of all companies providing access to voluntary accident and disability insurance reported declines in their workers’ compensation claims.

The Aflac Workers’ Compensation Report, an online survey conducted by Lieberman Research Worldwide on behalf of Aflac, asked 600 employers from small, medium and large U.S. companies if they provided employees with access to accident or disability insurance and, if so, whether they noted a corresponding decline in workers’ compensation claims.

When responses were broken down by company size, the survey found that 55 percent of large companies that provide access to accident insurance experienced declines in workers’ compensation claims, while 34 percent of small- and medium-sized companies each reported declines. These findings are important considering workers’ compensation benefits paid to injured workers in 2011 rose, costing American employers $77.1 billion.1

“For years, insurance agents and brokers have heard anecdotal rumors linking voluntary accident and disability insurance to reduced workers’ compensation claims, and we learned the anecdotes are true based on our recent study results,” said Tye Elliott, Aflac vice president of Core Broker Sales. “These findings confirm the correlation between accident and disability insurance and reduced workers’ compensation claims. Employers can now weigh the potential positive financial effects of offering accident and disability insurance against the costs of workers’ compensation claims.”

Measuring the impact of voluntary accident and disability insurance on workers’ compensation claims

In addition to asking employers if they could confirm declines in claims, the survey also inquired about the significance of those declines.2 Here are the responses of companies that provide access to voluntary accident insurance:

  • 14 percent of all employers reported declines of 50 percent or more, while 17 percent reported declines of 25 to 49 percent.
  • 12 percent of large-sized businesses reported reductions of 50 percent or more, while 29 percent reported declines of 25 to 49 percent.
  • 13 percent of medium-sized businesses reported reductions of 50 percent or more, while 14 percent reported declines of 25 to 49 percent.
  • 15 percent of small-sized businesses reported reductions of 50 percent or more, while 9 percent reported declines of 25 to 49 percent.

The findings were similar for companies that provide access to voluntary disability insurance — nearly half (47 percent) of large employers reported overall decreases in workers’ compensation claims. In addition, 43 percent of small companies and 33 percent of medium companies reported declines. Respondents were also asked if they could gauge the significance of the declines:

  • 15 percent of all employers reported declines of 50 percent or more, and 15 percent reported declines of 25 to 49 percent.
  • 11 percent of large employers reported declines of 50 percent or more, while 20 percent reported declines of 25 to 49 percent.
  • 18 percent of medium employers reported declines of 50 percent or more, while 7 percent reported declines of 25 to 49 percent.
  • 18 percent of small employers reported declines of 50 percent or more, while 17 percent reported declines of 25 to 49 percent.

What do these findings mean for companies? According to Elliott, “The results demonstrate that by making voluntary accident and disability insurance available to employees, companies can often decrease the frequency and expense of their workers’

Plan Members Now Save on Prescriptions with WalMart Partnership

Those who have the Abacus Series Voluntary Insurance through your organization can now save on prescription medications through any Walmart or Sam’s Club pharmacy nationwide. This prescription
discount is offered at no extra cost, and it is not insurance. Even if your employees and their covered dependents have pharmacy benefits through their health insurance, they are welcome to this Rx discount.

Your Walmart or Sam’s Club pharmacies can check to see which “plan saves the employee more money. Employees need to only bring their current health insurance ID card and prescription to the pharmacy. Call Walmart’s low-price network (formerly WMS) at 800.972.0943 and listen for the cardholder option. To find a pharmacy, visit Walmart.com, select Pharmacy and enter your ZIP Code under Find a Pharmacy.

Rx ID Card
To receive the Walmart Rx discount, complete an enrollment form for the Abacus Series Rx discount savings ID card.

Please note: This Rx discount savings ID card will work only at Walmart’s or Sam’s Club pharmacies and
does not replace your present pharmacy coverage.

Abacus and Health Options Worldwide Offer Wellness Tool for Employers

The Abacus Group, a leader in voluntary worksite product development, and Health Options Worldwide (HOW), a leader in promoting behaviors that drive early clinical recognition of disease, have announced a partnership to provide the HOW wellness engagement tool, myHINTTM, to agents who work with Abacus. Agents will now have the option to incorporate the wellness engagement tool into their strategy for their clients who offer the Abacus Series of products.

“Abacus agents will benefit from the introduction of myHINT™ as it positions them to demonstrate how worksite products can help to protect employees and their families,” says Hal Denton, SVP of Abacus. “The myHINT™ program enhances the entire customer relationship and builds credibility for the Abacus agent. Some Abacus agents have already started using myHINT tools and have incorporated them into their strategy.”

“Unfortunately most people have no idea what health risks they may have…with myHINT™, we try to change that by quickly identifying someone’s health risks.”

myHINTTM is an engagement tool that can maximize employee participation in worksite benefit programs. Virtual health coaches deploy physician recommendations and clinical guidelines that help to prevent those health risks from becoming a reality. myHINT™ communicates with employees about the importance of protecting themselves and their families. Through their virtual health coaches, employees are given monthly reminders by both email and text. about the risks to their health, and the recommendations that can mitigate those risks. This continuous engagement can help to support an agent’s re-enrollment strategy, provide a medium to offer additional benefits, and also support client retention.

Denton says that gaining access to employees has always been a challenge. “Many employees skip enrollment meetings, especially the folks who think they don’t need disability insurance other benefits. With myHINT™ they now feel like there’s a good reason for them to come.”

He adds, “The myHINT™ tool not only helps agents obtain better employee access at re-enrollment, but also helps agents add products such as critical illness or accident insurance to their clients’ worksite program. Agents now have the opportunity to deliver a global wellness program at no cost to employers that’s personalized to employees and their families.”

myHINT is available to all employees regardless of whether they elect worksite benefits, thereby increasing an agent’s access to their clients’ employees and supports the client commitment toward ideal conditions.

David Goldstein, CEO of HOW, explains, “Unfortunately most people have no idea what health risks they may have, and do not consider that something bad or potentially catastrophic, can happen to them. With myHINT™, we try to change that by quickly identifying someone’s health risks and then help to prevent them from happening.”

Le Phan, CEO of Strategic Benefit Solutions (SBS), uses myHINTTM as a tool to further support engagement strategies and states, “My firm positions myHINTTM as another component of our integrated solution to help drive the employee engagement, and this new tool has received positive response from both our broker partners and clients. It has further positioned our ability to leverage ideal enrollment conditions and employee engagement.”

Phan adds that with ACA, there has been a pendulum shift in accountability to the end-user (employee), and that her firm designs a strategy around the end-user with the goal to empower employees to be better benefit consumers.

“myHINTTM is an invaluable engagement tool that supports our efforts in making employees aware of their health risks and the financial exposure associated with those risks,” says Phan. “We then educate employees on how voluntary benefits can help mitigate their risks by bridging gaps in their traditional health coverage, such as deductibles and co-pays, and by providing additional financial protection. In today’s benefit climate knowledge is power, and the addition of myHINT to our engagement further supports employee empowerment, and health and financial literacy.”