Healthcare Practices Just Revealed They’ll Pay Premium Prices for Better Disability Insurance—But Only If You Know What They Actually Want
Alexandra Ginieres
Forget competing on price. MGIS surveyed 100 healthcare practice administrators and uncovered a premium market hiding in plain sight. These practices rank coverage quality above cost concerns and 69% will pay higher prices for better disability insurance. The catch? You need to know what “better” actually means to doctors.
The survey reveals a striking opportunity: while 91% of administrators report satisfaction with current disability coverage, 46% of their doctors complain about coverage gaps. This disconnect exposes administrators who care about their doctors but don’t know specialized solutions exist to solve what doctors keep raising.
The Perfect Storm: Doctor Shortage Meets Benefits Competition
The nationwide doctor shortage has transformed disability insurance from employee benefit to retention tool. Here’s what changed:
Practices Prioritize Competitive Benefits
- 76% elevated their benefits focus due to physician scarcity
- 37% struggle with doctor retention and turnover
- 31% consider disability insurance extremely important for recruitment
Financial Stakes Skyrocket Replacing one doctor costs between $1.8 million to $2.8 million in turnover and lost revenue. Each physician generates $2.4 million in annual revenue for affiliated hospitals. When vacancy costs $130,000 per month and average fill times stretch 4.3 months, practices lose $559,000 during searches alone.
Premium Solutions Find Receptive Market Despite cost pressures, 69% of practices will pay higher prices for better disability coverage. Coverage quality now outranks cost concerns—practices want solutions that work, not cheap policies.
Brokers Miss 77% of Opportunities
Current disability insurance decisions happen without broker involvement:
- HR teams influence 51% of practices
- Doctor partners/shareholders influence 45%
- Practice administrators influence 40%
- Boards influence 39%
- Brokers participate in only 23%
You’re missing three out of four opportunities to position specialized solutions.
What Doctors Actually Want (And Administrators Don’t Know How to Deliver)
Administrators ranked these as doctors’ top disability insurance priorities:
- Mental health/burnout coverage without lifetime limits (ranked #1)
- Higher benefit amounts above typical 60%
- No mandatory rehabilitation requirements
- Coverage based on specific procedures they perform
- Protection of bonus and partnership income
77% of practices report that over 25% of their doctors purchase individual disability insurance, but the practices don’t realize a coverage that mirrors many of the features of individual coverage exists—MGIS Disability Guard for Doctors.
The Market Momentum You’ve Been Waiting For
Healthcare practices aren’t just talking about change—they’re acting:
Active Review Plans:
- 43% very likely to review current disability insurance
- 33% somewhat likely
- 76% plan coverage reviews within 12 months
Implementation Intentions:
- 24% very likely to make disability benefit changes
- 46% somewhat likely
- 70% likely to implement changes
When administrators rank coverage quality above cost and 69% express willingness to pay more for better solutions, the market practically begs for specialized products.
Traditional Group LTD Falls Short
Administrators identify critical problems with conventional disability policies:
- Limited mental health/substance abuse coverage (44%)
- Cost (44%)
- Complex disability definitions (43%)
- Coverage gaps for high-earning doctors (38%)
- Doesn’t cover all income types (29%)
- Poor claims experience (26%)
Only 9% express complete satisfaction with traditional LTD products. The rest want better but don’t know options exist.
Why This Creates Your Biggest Opportunity
Three market forces converge to create perfect conditions:
1. Known Problems Seeking Solutions Administrators know their doctors complain about coverage gaps. They want to solve these problems but need brokers who can position specialized solutions rather than traditional group products.
2. Strategic Importance Recognized With doctor shortages forcing 76% of practices to prioritize competitive benefits, disability insurance evolved from cost center to strategic advantage. Practices view quality coverage as retention insurance.
3. Premium Market Develops Cost sensitivity decreases when turnover costs $2.8 million per doctor. Practices will invest in solutions that work—69% accept higher premiums for better coverage.
What This Means for Your Practice
Stop Competing on Price Survey data shows coverage quality outranks cost concerns. Practices want robust protection, not cheap policies. Lead with value, follow with price.
Address the Satisfaction Paradox
Your opening line: “I notice something interesting—91% of administrators think their disability coverage works great, but half their doctors complain about gaps. That’s not a coverage problem, it’s a communication problem. Here’s how to fix both.”
Lead with Mental Health Coverage
Doctors ranked mental health/burnout coverage without lifetime limits as their top priority. Most brokers bury this feature in policy details, but administrators identified it as doctors’ primary concern. Make it your headline benefit.
Position as Retention Solution
Frame conversations around financial impact: “Losing one doctor to burnout costs $2.8 million in turnover and lost revenue. Better disability insurance costs a fraction of that and helps prevent the loss.”
Strike While the Market’s Hot
With 76% of practices planning coverage reviews and 70% implementing changes within 12 months, timing favors brokers with specialized solutions.
Immediate Actions:
- Contact healthcare clients who haven’t reviewed disability coverage in 2+ years
- Request meetings with doctor partners/shareholders and practice administrators you haven’t met
- Update presentations to lead with coverage features before discussing premiums
The Bottom Line
Healthcare practice administrators want to solve their doctors’ coverage concerns but don’t know specialized solutions exist. This creates significant opportunity for brokers who can solve known problems rather than create new ones.
Currently, you participate in only 23% of disability insurance decisions. The other 77% happen without your input—and without access to the specialized products that actually address what doctors need.
When administrators say “our doctors complain about coverage gaps,” the winning response becomes “here’s exactly how to fix that.” This survey proves the market awaits brokers who can deliver doctor-specific solutions during the most talent-competitive era in healthcare history.
Ready to capture your share of the 77% of healthcare disability decisions happening without brokers?
Download our complete survey findings to discover specific talking points, market data, and action steps that position you as the solution to administrators’ doctor retention challenges.
Survey includes detailed demographic data, complete statistical analysis, and broker action items for immediate implementation with your healthcare clients.
