MAY/JUNE 2009

Innovation From An Unlikely Source

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Accidental Death and Dismemberment, long considered a backbone of the group benefit plan and a “meat and potatoes” kind of benefit (well maybe just the potatoes, as meat is often dressed-up), is a new frontier for insurers. Employees are looking for innovation in their Health and Dental benefits and, as these are the benefits they use the most (and catastrophe doesn’t have to strike to use them), a couple of Canadian insurers have enhanced their AD&D benefit to assist employees in the time of health crisis.

The most innovative product for insurers in years, Critical Illness (CI) is being used by some of them to add additional value to the AD&D benefit. For a modest increase in your benefits plan budget, a Critical Illness benefit can be added on to the AD&D. Critical Illness coverage provides a lump sum payout on the diagnosis of a covered illness, generally subject to a survival period, often 30 days. As medical advances continue, many of us will survive a diagnosis of a critical illness. Death rates from cancer continue to drop and survival rates from all types of diseases have increased dramatically over the last 50 years. Often, these illnesses will result in additional, unforeseen expenses that are not covered by government or employer benefit plans, for example, the cost of travel for treatment. A recent study of cancer patients found the out-of-pocket cost of cancer treatment to be $17,000 to $33,000, including time lost and caregiver time lost. While this may be shocking, consider the average patient in this study had travel costs of about $640 per month. (Note: participants were receiving treatment through programs in various locations across Ontario.) As an add-on to AD&D, despite relatively small benefits the rates are low, and coverage is guaranteed, although a pre-existing condition exclusion may apply.

Now, for Way Outside the Box
One specialty carrier has added an amazing new option to their Critical Illness product, which is available with either standalone CI or the AD&D/CI combination. Recognizing the current condition of the medical system and the challenges faced by patients with a diagnosis of cancer, ACE INA has partnered with CarePath. CarePath is a team of nurse case managers and physicians who will help guide individuals with a cancer diagnosis through the health care maze to ensure proper diagnosis and treatment. These individuals serve as an educated voice for the patient and can assist by providing the patient with the right questions to ask or even through discussions with the doctor directly. While our medical system is excellent, this would be a wonderful resource for cancer patients thrown into an unfamiliar situation with limited knowledge to draw from. Resources leading to effective symptom management will ensure that employees return to work more quickly, be more productive, and will have a positive impact on their performance. This could help reduce disability costs and ensure more effective use of your drug plan dollars. CarePath assistance extends to employees’ dependents as well, so this may help avoid “presenteeism” when a family member is in crisis.

This is something that, outside the workplace, money can’t buy. CarePath assistance is only available through employer-sponsored plans and, while you hope your employees never need these services, studies show 3 of 4 Canadian families will be affected by cancer, so this benefit can set you apart from other employers in the marketplace.

K+A would be pleased to assist you in providing this benefit to your employees. Please let us know if you have any questions or if you would like to add this coverage to your plan.

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