Max Sawicky wrote:
>
As Marta alluded, the links between the
> components, which I'm not well-versed on, are probably
> worth more attention.
Historically the private insurance industry has not delivered a reliable disability insurance component. Edward Berkowitz (Disabled Policy) does a job of explaining the tensions between the business community and the establishment of DI in the years leading up to passage of the disability insurance component in 1956. Business fought public disability benefits tooth and nail even though they weren't making profits selling disability policies. Berkowitz writes:
“They [insurance companies] tightened the definition of disability, lengthened the waiting period before a disabled person could begin to receive benefits, refused to sell policies to women, and restricted benefits to those who became disabled under the age of fifty-five. In other words, they offered limited protection and attempted to take only the very best risks. Even so, they lost money.”
Same games go on today. If one already has a disability but may be able to work (is working or looking for work) that one often will be discriminated against by insurers of all kinds, life, health, disability. One may be sold an inferior bill of goods compared to what one can get if nondisabled simply because one has an impairment. Profit is a detriment to inclusive health care and private disability insurance for those who with impairments becasue the policy is a "product" that makes profits by assessing risk and calculating how to best accummulate more capital. We are generally considered damaged goods going in, and high risk. Though the courts have made some attempt to make insurers come up with actuarials that really reflect their costs when it comes to insuring various disabilities, they have not ruled that the ADA applies to the content of insurance policies. So if there is sound data the insurers can charge more, make exemptions, not cover pre-existing conditions for periods of time, etc. They can price it out of reach.
Public disability benefits, on the other hand, are not commodities for sale. -- Marta Russell