Ending Malingering

Client

International Fortune 1000 company in service industry with 10,000 employees in 15 sites across U.S.  They have a self-insured, self-administered short-term disability (STD) plan with advice-to-pay services provided by the long-term disability (LTD) carrier. Work & Well began handling the advice-to-pay piece, interfacing with the carrier for cases going to LTD.

Situation
The company had an unusually high number of short-term disability leaves, with many employees going to long-term disability. Human resources site managers felt many of these leaves were questionable. Not only was employee morale low, but the costs of benefit programs were skyrocketing, driving up corporate fixed costs. Company profits were being negatively impacted, an especially dangerous situation since the industry operates on very narrow profit margins.

Action Taken
After assessing the situation, Work & Well determined the STD guidelines were loosely defined and erratically enforced. We recommended tighter STD guidelines and implemented aggressive, fair and consistent STD medical management across all company sites.

Results
Under Work & Well’s medical management, 92% of STD cases were closed after 15 weeks, compared to only 57% our competitor closed in the same time period. The number of employees going on to LTD was also dramatically reduced.

Savings
Work & Well’s program saved the client approximately 25,000 STD days for a total payroll dollar savings of $2.2 million over three years.