For Employers

Why offer short-term disability benefits? Give your employees protection from loss of income

More than ever, Americans are living paycheck to paycheck. This means they are financially unprepared when life throws a curve ball, like an unexpected illness or an accident that results in an injury:

Federal law requires a strict definition of disability. Social Security will pay benefits only to those who are unable to work because of a medical condition that’s expected to last at least one year or result in death. That’s why short-term disability coverage is so important. It provides a critical source of financial support when people need it most.

Coverage for short-term disability protects your employees’ paychecks, providing them with income when they can’t work due to an illness or injury. It also protects employers by reducing your financial risk and liability. With short-term disability coverage, you won’t have to face the difficult decision of halting an employee’s wages because they can’t return to work.

If you want your employee benefits package to stand out, short-term disability is an easy win. Offering this protection to your employees is a way to reduce turnover, and help you attract and retain talent.  

How short-term disability works Our experts can help you provide short-term disability to your employees. Here’s how it works:

  • Each employer can determine the number of hours worked per week to qualify for coverage.
    Most employers offer short-term disability to full-time employees.
  • Employers choose from various plans to determine the maximum length of the benefit period.
    The most common maximum benefit periods are 13 or 26 weeks.
  • When an employee becomes sick or injured in a covered accident, and a doctor indicates they are unable to work, they become eligible for benefits.
  • The employee must be actively and regularly working the set number of predetermined hours per week, and must have a medical condition due to sickness or injury that prevents them from performing their job duties.
  • The employee receives a weekly cash benefit based on an amount selected by the employer, which is determined by their earnings.

Plan options for employer groupsNon-contributory

  • Employer pays the full premium
  • All eligible employees are required to enroll
  • Lowest cost per employee

 Contributory

  • Both the employer and employee share the cost of premium
  • 70% of eligible employees are required to enroll

 Group Voluntary

  • Employee pays 100% of the premium
  • Requires the greater of 2 or 25% of eligible employees to enroll

Sample monthly comparison: Contributory: 8-10% more than non-contributory Voluntary: 13-15% more than contributory Individual: 43-50% more than voluntary Percentages are based on a variety of factors, including demographics, industry, plan design and employer contribution. These rates are based on a 35-year-old male.  

Take the next step. Select from our competitively priced short- and long-term Disability plans and options for your employees. Find more information at https://www.bcbsks.com/short-and-long-term-disability.  

Advance Insurance Company of Kansas (AICK) offers a variety of life and disability insurance plans at affordable group rates. AICK is proud to provide your employees with group coverage backed by more than 35 years of trusted service and stability,   AICK is a subsidiary of Blue Cross and Blue Shield of Kansas. AICK covers more than 121,000 Kansans, with more than $2.6 billion of life insurance in force. A.M. Best, one of the industry’s most trusted rating agencies, confirms the financial strength of AICK with an “A” (Excellent) rating.

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