Case Study – Saving a client 36% through a Private Disability Plan

The unemployment tax rate is not the only tax rate that Dunn Corporate Resources (DCR) helps employers reduce. The majority of our employers are unaware that savings are available in other areas such as temporary disability. (In New Jersey, “TDB” is the term used for mandated short term disability coverage). In fact, earlier this year, DCR helped an auto group with 600 employees save $40,000 on their state mandated disability taxes.

Dunn Corporate Resources proposed that the auto group look into moving off of the state plan to a privatized plan. Since we receive notification of most clients’ tax rates, we knew going in that we had an excellent chance of success. We took the key data for the auto group and received bids from several insurance carriers that specialize in private disability plans. We presented, and our client accepted, the best offer.

The result? The auto group received a 36% reduction in their tax rate. This generated a dollar savings of $40,000 over the next two years.

Savings was not the only benefit to switching to a private plan. Of equal, or perhaps, greater importance, is the dramatic improvement in claims processing. This directly impacts your employees at a vitally important time. If someone is sick or injured and unable to work for any extended period of time, the last thing they need is to wait for over two months between their last paycheck and receiving a disability check.

With a private plan, claims get processed and paid in one week or less with our carrier, compared to the state plan where claims get processed in an average of nine weeks. Once employee’s claims are processed, they receive payment via check with the private carrier instead of a pre-loaded debit card through the state plan.

The bottom line? Lower costs and better benefits for your people.

Ask your Dunn representative today about exploring the potential savings in your temporary disability plan! If you are already in a privatized disability plan, ask us about getting a competitive quote!