Integrated Disability Management IDM

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NJ Compensation Association

• Integrated Disability Management (IDM)
• Short Long Term Disability and Workers
• Compensation- Vision for the Future
• Discussion
• May 16, 2000

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IDM Conceptual Framework
Occupational
Non-Occupational
WC Medical
Group Health
Health Care
Sick Leave
WC Indemnity
Other PTO
Sick Leave
Lost Time
LTD
STD
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Disability Management Paradigm Shift
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IDM Definition
An integrated approach to managing statutory and
employer-sponsored disability benefits.
Why Integrate?
Workers Compensation
Group Benefits (STD, LTD)

• Improved benefit delivery to employees
• consistency
• streamlined process
• reduce payment interruptions/delays
• Maximize best management approaches
• Reduce benefit costs
• Reduce administration costs
• Reduce double-dipping

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Integrated Disability Model
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SAMPLE IDM MODEL
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IDM MODELS - APPROACH A - EMPLOYER
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IDM MODELS - APPROACH B - EMPLOYER
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IDM MODEL - APPROACH C - EMPLOYER
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LESSONS LEARNED FUTURE PLANS

• Cross-Functional Teams
• Align focus of programs and plans common
  mission/vision
• Obtain quality baseline data
• Instituting an absence management process (FMLA,
  unscheduled absences)
• Exploring global integrated absence management
  opportunities (RTW policies, job descriptions,
  etc.)
• Partner with your vendor(s) for performance goals
  and measurements
• Communication.Key to Success!

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IDM Marketplace
Vendor Aetna AIG CIGNA CNA Fortis Gates McDonald
/ Pru Hartford Unicare/Wellpoint Kemper Liberty
Mutual MetLife (Synchrony) Provident/Genex Pr
udential/Gates McD Reliance Standard/Matrix Royal
Sedgwick CMS Travelers (Synchrony) UNUM Wausau
Zurich (piloting)
STD x AIG Life x x x x x x x x x x x x x MetLife
x x x
LTD x AIG Life x x x x x x x x x x x x x MetLife
x x x
WC AIG CS ACE x x x x x Travelers x x x x x
x
Health x x x x x x
As of October 1, 1999 Provident purchased by
Unum Liberty Mutual Wausau merger
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Next Steps Common Approach

• Create a multi-disciplinary task force
• Perform a quantitative and qualitative assessment
  of your disability programs
• Measure the direct costs of time off related to
  employee illness / injury
• Identify the indirect costs of disability time
  off
• Identify and analyze your cost drivers
• Determine model and delivery system
• Select partners / vendors
• Identify pilot site (s)
• Initiate training
• Implementation

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Questions Answers

• Thomas F. Ryan, MBA, RN
• Senior Vice President
• Marsh Risk Consulting
• One World Trade Center
• 100th Floor
• New York, New York 10048
• [phone]
• [phone]
• E-Mail Thomas.F.Ryan_at_marshmc.com

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