Source: 2004 JHA Mid-Year U.S. Group Disability Market Survey

Click here to enlarge graph

A physician’s prognosis, treatment plan, and attitude at the onset of impairment will ultimately impact the duration of a disability.  Although patients have more access to medical information than ever before, a physician’s role is crucial to the entire healing process.  Many disability insurance companies have struggled to get physicians to understand their disability products and how their influence can impact

  more...

Federal versus State pre-emption has long been an issue in disability litigation, especially in the area of ERISA governed policies. Plaintiff attorneys have brought suits against disability insurers in state courts using clever arguments, even before ERISA remedies have been exhausted. Some states have passed laws to make this possible.

However, insurance companies have resisted these efforts on the part of plaintiffs and 2 cases recently reached the U.S. Supreme Court. Although the Supreme Court cases were health insurance related, they have far-reaching implications for employee welfare benefits governed by ERISA, including disability insurance.

The attached article outlines the background of the Davila/Calad decision, and the opinions held by both insurer groups, and consumer groups about the outcome. more...

TAXABILITY OF GROUP DISABILITY BENEFITS
Connie Cardamone, CPA

A recent Internal Revenue Ruling, Rev. Rul. 2004-55, provides a distinction in determining the taxability of STD and LTD benefits for certain plans.

Generally, the taxability of group disability benefits is based on the portion of the total premium paid by the employer for the 3 policy years before the calendar year in which the disability benefit is paid.

Since more employers have been giving employees choices regarding payment of premiums (i.e. with pre- or post-tax dollars), they have

more...