Automatic Enrollment in Private Group Disability Insurance: Evidence to Date and Prospects for the Future

May 21, 2020

Given the surprisingly high likelihood of an extended period of disability and the resulting deleterious effects of the financial stress, why did only 34 percent of private industry workers choose to participate in long-term disability insurance programs in March 2019? In this paper, the author takes a closer look at the economics and institutional characteristics of private long-term disability insurance coverage in the U.S. in 2019 and offers some suggestions for increasing the proportion of workers covered by PDI.

CRA Vice President and insurance economist Mark Meyer’s paper for The McCrery-Pomeroy SSDI Solutions Initiative explains how the automatic enrollment of employees into private disability insurance (PDI) programs can be beneficial to the employees and their employers, as well as federal and state governments. The McCrery-Pomeroy SSDI Initiative has commissioned a series of research and papers to help improve disability policy in the U.S.

To read the paper, click here.

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