On the recordSeptember 19, 2013
As we debate SNAP reforms, I want to draw attention to a recent analysis which shows that thousands of families avoid the need for public assistance because of private disability insurance benefits. Most of those covered by private disability insurance receive it from their employer. For a low premium, roughly $25 per month, workers receive 60 percent of their salary should they become disabled. With this benefit, the worker is able to provide for their families, pay bills, and buy food and medicines. Workers can then focus on recovery. A 2011 analysis by Charles River Associates highlights several things, like the fact that Americans underestimate the risk of becoming disabled. And few American households have the savings to withstand a loss of income. Because of the income offered by disability insurance, the study estimates nearly 575,000 families avoid both poverty and public assistance each year. This translates into an annual $4.5 billion savings. If we could cover more workers, we could save tax dollars. Unfortunately, only about one-third of workers have access to employer-sponsored disability insurance. We must raise awareness about both the risk of disability and the affordability of insurance. SNAP helps the needy, but a backup plan through insurers can provide generous assistance to the disabled and save taxpayer money. ____________________
