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Understanding Disability Insurance for Physicians
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Understanding Disability Insurance for Physicians

Introduction

The speaker introduces herself as an OBGYN and shares a story about an incident that led to her injury.

  • The speaker is an OBGYN by training.
  • She shares a story about an incident that led to her injury.

Injury and Recovery

The speaker talks about her injury, surgery, and recovery process.

  • The speaker's first orthopedist told her that professional baseball pitchers have similar injuries.
  • She continued to work despite chronic pain.
  • Her second orthopedist recommended surgery.
  • She was terminated from her job after being cleared for office gynecology but not 100% of her job duties.
  • She had to sue for workman's comp after being denied due to continuing to work while injured.

Disability Insurance

The speaker discusses disability insurance and the different types available.

Group Benefits

  • Disability insurance is a commodity with two major types - group benefits and private policies.
  • Group benefits are often employer-paid or voluntary if you pay for it yourself.
  • Employer-paid policies tend to be less expensive than private policies.

Private Policies

  • Private policies can be customized based on your needs but tend to be more expensive than group benefits.

Overall, it is important to understand the differences between group benefits and private policies when considering disability insurance.

Paying for Insurance Policies with Post-Tax Dollars

The benefits of paying for insurance policies with post-tax dollars are tax-free.

Benefits of Paying for Insurance Policies with Post-Tax Dollars

  • Paying for insurance policies with post-tax dollars provides tax-free benefits.
  • Private policies are not portable and do not go with you if you leave your employer.
  • Owning a policy allows you to control it, create it, and keep it. It is like having it in your back pocket.
  • Portable policies can be taken with you throughout your career.

Importance of Understanding Policy Language

Understanding policy language is important because there is no standardization in the insurance industry, which can lead to confusion and misunderstandings.

Lack of Standardization in Policy Language

  • There is no standardization of language in the insurance industry, unlike medicine and most other fields.
  • Companies use the same phrases but define them differently or use different phrases and define them similarly, leading to confusion.
  • Even if it's the same carrier and they have a group product and a private product, there's no sync between the two.

Importance of Understanding Policy Language

  • Knowing what a policy actually covers and how much it covers is crucial when selecting an insurance policy.
  • Many group policies only cover base income, not RVU or overtime pay, which can lead to misunderstandings.
  • There is often a maximum benefit, and employers are not required to disclose this information.
  • It is important to ask for the master copy of the policy during open enrollment to read the fine print.

Issues with Policy Language

  • Many group policies may say they are own occupation, but when you read the document, it may switch to any occupation after two years.
  • The way that companies define total disability can be problematic for physicians.

Being a Productive Member of Society

In this section, the speaker talks about how almost everybody tries to come up with a way to be a productive member of society.

Ways to Be Productive

  • Almost everyone tries to find ways to be productive.
  • Some people work while recovering from an illness or injury.
  • Different carriers have different triggers for benefits.
  • The amount you lose before receiving benefits varies by carrier.

Understanding Policy Differences

In this section, the speaker discusses the importance of understanding policy differences when comparing policies.

Policy Differences

  • Policies differ in how they pay you back.
  • It's important to understand what's unique and universal in each policy.
  • Cost of living adjustments vary by carrier and can result in more money over time.

Catastrophic Benefit Coverage

In this section, the speaker explains catastrophic benefit coverage and its importance.

Catastrophic Benefit Coverage

  • Catastrophic benefit coverage is an additive benefit that helps if something really horrible happens.
  • This is usually the first thing that people would get rid of because it's not always necessary.

Mental Health and Substance Abuse Coverage

In this section, the speaker discusses mental health and substance abuse coverage.

Mental Health and Substance Abuse Coverage

  • Different companies have different options for mental health and substance abuse coverage.
  • There is a financial incentive to having less coverage.
  • Not every carrier gives you all of the options.

Conclusion

In this section, the speaker concludes by emphasizing the importance of understanding policy differences when choosing an insurance policy.

Final Thoughts

  • It's important to understand how policies differ from one another.
  • Some physicians can only get a two-year benefit.

OBGYN Insurance Coverage

In this section, the speaker discusses insurance coverage for obstetricians and gynecologists.

Insurance Coverage for OBGYNs

  • Insurance coverage for OBGYNs depends on the carrier.

Women's Health Insurance Coverage

  • It is important to have a paper trail behind your medications.
  • Women's health is super important, and it is recommended that women have a private policy in place before their first pregnancy.
  • If you've had a miscarriage within 12 months of applying, future pregnancies will not be covered.
  • Certain pregnancy complications such as gestational diabetes or thrombocytopenia of pregnancy may result in carriers not covering future pregnancies.
  • If there is even a note in your chart that you're being worked up for infertility, carriers will not cover future pregnancies.

C-section Coverage

  • At one point, any woman who had a C-section automatically had no future pregnancies covered.
  • The speaker fought hard to change this and was successful.

Screening Tests

  • Carriers want to see that pap smears are up to date for older doctors.
  • Abnormalities may result in carriers not covering your cervix until you've had two negative Pap smears.
  • Mammograms can be confusing but are also important.

BMI and Weight Loss Surgery Coverage

  • BMI is currently a big fight because it changes the cost of policies.
  • The speaker is running into cases of people of different ethnicities who are being penalized due to flawed BMI charts.
  • Weight loss surgery has an automatic health hold, and carriers will not cover it for at least the first year.

Understanding the Cost of Disability Insurance

In this section, the speaker discusses how disability insurance carriers calculate premiums and why it is important to speak with someone who understands the intricacies of disability insurance.

Factors Affecting Cost

  • Disability insurance carriers will add or subtract half of your answer when calculating premiums.
  • Carriers may hold moving in the right direction against you.
  • Disability insurance is more expensive for women than men due to historical data on injury and illness rates.
  • Men pay more for life insurance because they historically die younger.

Importance of Purchasing Early

  • Residents and fellows can receive deep discounts on policies that stay with them for the life of the policy.
  • Waiting until attending status to purchase disability insurance can result in thousands of dollars in lost savings.
  • The time between match and starting internship is a good time to purchase disability insurance.

Occupational Classes

  • Prior to declaring your specialty, all physicians are classed at the most expensive class.
  • After matching, physicians are pigeonholed into different occupational classes based on risk mitigation.

Overall, understanding how disability insurance carriers calculate premiums and purchasing early can save individuals thousands of dollars over their lifetime. It is also important to understand how occupational classes affect cost when purchasing disability insurance.

Video description

In this informative webinar, Dr. Stephanie Pearson, MD, FACOG, an Obstetrics and Gynecology physician and CEO of PearsonRavitz, provides a comprehensive overview of disability insurance for medical professionals. She discusses the potential financial impact of not having disability insurance, the complexity of the disability insurance industry, and the various factors to consider when choosing a policy. Dr. Pearson emphasizes that disability insurance is essential to protect your income and livelihood in the event of an unexpected illness or injury. She advises purchasing disability insurance as early as possible, ideally right after matching, to secure the best rates and coverage. She also highlights the importance of understanding health factors and coverage limitations when applying for disability insurance. The webinar provides key points to consider when choosing disability insurance, such as looking for policies tailored to your specific medical specialty, understanding the difference between "own occupation" and "any occupation" policies, and ensuring the policy has a non-cancelable and guaranteed renewable clause. Dr. Pearson acknowledges that the disability insurance industry is constantly changing and evolving, making it essential for physicians to stay informed about these changes and adapt their coverage accordingly. Please note that Dr. Pearson is the CEO of PearsonRavitz, a company that provides disability insurance services. If you purchase a policy through PearsonRavitz, the company may receive a commission from the insurance company. This potential financial benefit for PearsonRavitz does not affect the importance of the information provided but should be considered when evaluating the advice given. Action Items: -Apply for disability insurance as early as possible, ideally right after matching and before starting your internship. -Work with a knowledgeable broker who understands the intricacies of the application process. -Stay informed about industry changes and adapt your coverage accordingly. -Consider the long-term benefits and savings of disability insurance, rather than focusing solely on the upfront costs. -Review and understand the specific terms of your policy, including the elimination period, "own occupation" vs. "any occupation" policies, and non-cancelable and guaranteed renewable clauses.