WHAT IS IDI SUPPLEMENT?
Welcome to the MGIS Income Protect Individual Disability Insurance (IDI) Series. In this module, we will be discussing what is IDI Supplement insurance. You may have heard a new term being used recently in conversations regarding healthcare professional disability insurance. The term is IDI Supplement. What is IDI Supplement and why is it important to physicians and dentists? As we outlined in the previous video, early in their careers, most physicians and dentists purchase Individual Disability insurance (IDI) coverage, which is highly customized to the particular procedures they perform and their needs. Unfortunately, IDI carriers limit the coverage they will provide and cause many doctors to develop a coverage gap and cannot replace the recommended 65% to 80% of their income.
To close the gap, they can add a layer of Group LTD coverage, but traditional policies lack strong IDI type features and include provisions that can actually be harmful to physicians at claim time. IDI Supplement closes the income replacement gap with an extra layer of protection that closely mirrors the key provisions of many IDI policies. These four features distinguish IDI Supplement coverage from traditional LTD policies: First, at the core is the definition of disability, which is based on the actual procedures performed over the past 12 months as defined by CPT/CDT procedure codes. It doesn't matter what other doctors might be able to do, not even those in the same specialty or subspecialty. If the doctor cannot perform the procedures they have built their practice on, they are disabled and receive a benefit. Second is ensuring that the doctor has choice regarding when and how fast to return to part time work or to come back in another role. This should not be the decision of a claims person at the insurance carrier. Third is the partial benefits paid while the doctor is returning to work. The IDI Supplement approach allows doctors to receive part-time income plus benefits of up to 100% of prior income for two years. Most traditional carriers only do that for one year, if at all. Finally, IDI Supplement removes managed disability restrictions that can harm doctors at claim time. This includes ones that limit benefits based on a self-reported injury like back issues, the most frequent cause of disabilities, or a 40-hour work week, as many traditional LTD policies do.
The Income Protect IDI Supplement insurance solution combines the strengths of IDI and traditional Group Long-Term Disability Insurance (LTD). It supplements your existing IDI policy by mirroring key coverage provisions found in IDI, like CPT code based own procedures definitions and provides the coverage on a group platform, meaning that the insurance is available as guaranteed issue. No health statements or medical exams required. You get the best of IDI and group disability insurance, including guaranteed issue while eliminating the managed disability restrictions in many traditional Group LTD policies. Thank you for watching the MGIS Income Protect Series. We hope you enjoyed this episode. Want to learn more? Click on the next video or visit us at mgis.com.