{"id":453,"date":"2013-04-06T14:32:53","date_gmt":"2013-04-06T14:32:53","guid":{"rendered":"http:\/\/www.unitedwestandllc.com\/uws\/?p=453"},"modified":"2013-04-06T14:32:53","modified_gmt":"2013-04-06T14:32:53","slug":"social-security-disability-continued","status":"publish","type":"post","link":"https:\/\/www.unitedwestandllc.com\/uws\/2013\/04\/06\/social-security-disability-continued\/","title":{"rendered":"Social Security Disability Continued"},"content":{"rendered":"

After a good night\u2019s sleep, I remembered that the private market for physician long term disability insurance changed dramatically in the 1990\u2019s. \u00a0The physicians before the 1990\u2019s were considered the best risk in this marketplace.\u00a0 As a consequence, the physicians were rewarded by the insurance companies with low premiums, lax underwriting, and generous policy provisions. \u00a0\u00a0However, during the 1990\u2019s and subsequently, \u00a0the number of claims rose dramatically.\u00a0 \u00a0Some have suggested it was caused by an attitude change among the physicians.\u00a0 Others suggested it was a consequence of the \u00a0pressures put on the physicians by third party payers (Medicare, Medicaid, Blue Cross-Blue Shield, etc.).\u00a0 These third parties cut physician reimbursements dramatically, increased their paperwork burden, and subjected physicians to intense audit scrutiny with criminal and civil penalties if found wanting.\u00a0 As a consequence of the major increase in physician long term disability claims, the physician long term disability marketplace changed radically. \u00a0Premiums increased dramatically, underwriting became very intense, and the policy provisions became much less generous.<\/p>\n

Was the social security experience the same as the physician experience; i.e., was there a dramatic increase in disability claims starting in the 1990\u2019s?\u00a0 The social security experience, on the other hand, might have been more linear or it might have accelerated dramatically at other times. \u00a0\u00a0Let\u2019s look at the data from 1960 to 2010 in 5 year intervals.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Fiscal Year <\/strong><\/p>\n<\/td>\n

\n

Disability<\/strong><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/strong><\/td>\n\n

Payments<\/strong><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/strong><\/td>\n\n

(in $millions)<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

1960<\/p>\n<\/td>\n

\n

560<\/p>\n<\/td>\n<\/tr>\n

\n

1965<\/p>\n<\/td>\n

\n

1,498<\/p>\n<\/td>\n<\/tr>\n

\n

1970<\/p>\n<\/td>\n

\n

2,954<\/p>\n<\/td>\n<\/tr>\n

\n

1975<\/p>\n<\/td>\n

\n

7,982<\/p>\n<\/td>\n<\/tr>\n

\n

1980<\/p>\n<\/td>\n

\n

15,332<\/p>\n<\/td>\n<\/tr>\n

\n

1985<\/p>\n<\/td>\n

\n

19,372<\/p>\n<\/td>\n<\/tr>\n

\n

1990<\/p>\n<\/td>\n

\n

25,230<\/p>\n<\/td>\n<\/tr>\n

\n

1995<\/p>\n<\/td>\n

\n

41,380<\/p>\n<\/td>\n<\/tr>\n

\n

2000<\/p>\n<\/td>\n

\n

56,046<\/p>\n<\/td>\n<\/tr>\n

\n

2005<\/p>\n<\/td>\n

\n

86,468<\/p>\n<\/td>\n<\/tr>\n

\n

2010<\/p>\n<\/td>\n

\n

126,423<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Graphing the data, there appears to be 2 recent points of acceleration, starting in 1990 to 2000 and then another acceleration starting in 2000 thru 2010. \u00a0The data is different than the physician data.\u00a0 It would be interesting to know from the actuaries of the Social Security Administration if these accelerations were from just the number of claims or a combination of the number of claims and the size of the claims. \u00a0I will ask.<\/p>\n

Harry Pukay-Martin<\/p>\n","protected":false},"excerpt":{"rendered":"

After a good night\u2019s sleep, I remembered that the private market for physician long term disability insurance changed dramatically in the 1990\u2019s. \u00a0The physicians before the 1990\u2019s were considered the best risk in this marketplace.\u00a0 As a consequence, the physicians were rewarded by the insurance companies with low premiums, lax underwriting, and generous policy provisions. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-453","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.unitedwestandllc.com\/uws\/wp-json\/wp\/v2\/posts\/453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.unitedwestandllc.com\/uws\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.unitedwestandllc.com\/uws\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.unitedwestandllc.com\/uws\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.unitedwestandllc.com\/uws\/wp-json\/wp\/v2\/comments?post=453"}],"version-history":[{"count":5,"href":"https:\/\/www.unitedwestandllc.com\/uws\/wp-json\/wp\/v2\/posts\/453\/revisions"}],"predecessor-version":[{"id":458,"href":"https:\/\/www.unitedwestandllc.com\/uws\/wp-json\/wp\/v2\/posts\/453\/revisions\/458"}],"wp:attachment":[{"href":"https:\/\/www.unitedwestandllc.com\/uws\/wp-json\/wp\/v2\/media?parent=453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.unitedwestandllc.com\/uws\/wp-json\/wp\/v2\/categories?post=453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.unitedwestandllc.com\/uws\/wp-json\/wp\/v2\/tags?post=453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}