Bottom-line Tip #5: Review your self-insured long term disability ongoing costs and reserves

Brought to you by Hewitt

A large manufacturing company came to Hewitt LCG for help in reducing the cost of its long term disability (LTD) program. The company had experienced a high volume of self-insured LTD claims, creating inflated LTD claim reserves.

Based on its data, the company lacked confidence that it was getting the best claim outcomes for employees, as well as its business. Hewitt worked closely with the company to do a comprehensive review of its claims and claims process and to re-balance its claim reserves.

Outcomes:

• Eliminated the company's liability for LTD reserves in excess of $16 million
• Increased the number of benefits offsets, reducing the company's financial liability and monthly benefits payments
• Reemployed claimants and/or terminated claims
• Settled claims allowing claimants to pursue career changes