Short Term / Long Term Disability Update

TSEA September 23, 2016 0
Short Term / Long Term Disability Update

The state at the June 30 insurance committee meeting awarded a contract to The Standard to deliver Short Term/Long Term Disability benefits to state and higher education members in 2017.

During the course of implementation, representatives from higher education raised concerns about the premium increases that members enrolled in the disability plans currently authorized by higher education would experience under the newly awarded contract. The premium increase for some members, particularly those in the higher age bands, would be significant with some more than tripling. Based on higher education’s feedback that they could not move forward with offering this product to their members and The Standard’s subsequent statement that without higher education members they could not honor their RFP pricing and would require a cost adjustment to perform the contract, Benefits Administration consulted with the Central Procurement Office regarding our options.

Following approval by the Central Procurement Office, and in partnership with higher education, Benefits Administration reissued new cost proposals to the two original qualified proposers – The Standard and MetLife – in hopes of soliciting better pricing for the disability products, particularly long-term disability. During the September 16 meeting, the insurance committee awarded a new contract to MetLife, with plans to offer benefits in 2018.

As a reminder, TSEA members have access to many voluntary benefits, including disability income protection. CLICK HERE to learn more about the benefit programs available to members.

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