It’s one thing to hear from a long term disability insurance attorney about all the mean-spirited tactics used by insurance companies and their hired hands to deny and delay claims, but quite another when a journalist reports on the inner workings as carried out by an industry whistleblower.
Long term disability insurance attorney Jason Newfield has practiced in this arena for more than two decades and has seen the cruel and uncaring manner in which LTD insurance companies treat claimants. When he read a recent article from New York Magazine, “The Confessions of Insurance Executives,” he knew it was important to share.
The article paints a troubling picture of an insurance world where manipulation of public opinion, protection of stock prices at all costs and a complete disregard for what happens to people as a result of its actions is business as usual.
It centers on four highly positioned insurance executives who left their well-compensated jobs because they realized how horrific the battle between powerful insurance companies and people had become. One of them, Wendell Potter, was with Cigna and is now a highly visible whistleblower waging his own war against for-profit insurance companies.
As he watched the insurance company’s increasing shift of the cost of care onto patients in favor of massive stock profits, Potter had started to question the morality of his role as communications professional. He was assigned to undermine Michael Moore and his documentary Sicko, which criticized the US healthcare system. That was when he realized he was on the wrong side.
Potter knows first-hand the steps insurance companies take to get as many claims denied as possible, how public opinion spins are managed and how decisions are made. Imagine a conversation where the insurance company decides it’s being too nice to doctors, so they’re going to drop 10% of providers and even cut costs by specifically targeting specialists who are too expensive?
When the phrase “we need to execute a few hostages” was used, one former insurance executive said he got a sick feeling in his stomach. It’s kind of like the feeling our clients have when they receive a letter from the insurance company saying their LTD claim has been denied because they’re not really unable to work.
That same executive started a company working with doctors and helping them negotiate better terms with insurance industry giants. The response from his former employer? Cigna told some of his clients if they continued working with him, they would be cut from coverage. Cigna won’t work with him directly to this day, so those clients who decided to stay with him have to be in touch with Cigna representatives directly. Some of his pals won’t be seen with him in public, so high is the fear of what Cigna could do to their own professional lives.
These are not friendly people, no matter how warm and fuzzy their commercials are. So how can you protect yourself?
If you are considering filing a long term disability claim, we urge you to contact Jason Newfield for a free consultation. He will be able to review your policy and your medical records and tell you what you can expect when you file. The free consultation will give you a more honest evaluation than you’ll get from someone in HR or an insurance company sales rep. It’s free, there’s no obligation.
If you’ve filed a long term disability insurance claim and are waiting for a response from the insurance company, Jason Newfield recommends you start stockpiling information you may need if the insurance company comes back to you with a request for more information. This may include:
- Keep a journal of all appointments with doctors, physical therapists, or any appointments outside of the home. If you have a large claim, your activities might be under surveillance.
- If you haven’t already located your LTD policy, find it – or ask HR to provide you with a copy of the policy you purchased when you signed up for coverage.
- If you bought a private policy through a broker, contact them and get the correct policy. The one you bought ten or twenty years ago is different from the one being issued today. This is important.
- If you are still working but working fewer hours or seeing fewer patients, document exactly what your reduced work schedule looks like and how it has impacted your income.
- Get off of social media. The insurance sector was very quick to learn this could be a valuable way to watch for activities and gather evidence to be used to challenge claims. Even if you only make it out of the house once every few months, the photo of you engaging in activity outside of your home is going to be twisted into proof that you are able enough to go to work.
If you’ve filed a claim and received a letter asking for more information, you should call Jason Newfield. This usually means the insurance company is building a case against your claim. This request seeks to destroy your claim on a few different levels:
- If you delay responding, you could lose the right to defend your claim permanently. There are many deadlines in LTD claims and responding to the insurance company’s request for more information is one of them.
- Is what the insurance company is asking for within its rights according to your policy? Many times, people are asked to provide financial records or other materials that are not included in their policies. If you provide more information or the wrong information, you could unwittingly give the insurance company an angle to work against you.
The bottom line: the insurance companies who deny more claims make more money. It hasn’t always been that way – Potter says it’s about three decades since the industry became dominated by massive corporations—but this is how it is today. Claimants must be well positioned in advance of their claims, or face denials.
Despite the best efforts of former insurance executives like Potter, Jason Newfield doesn’t expect the long term disability insurance companies to change their practices. Over the decades, he’s seen class action lawsuits and State Insurance Commissioner offices bring their cases and win against LTD insurance companies, without effectuating real change.
Your best option? Retain a highly skilled disability attorney to represent you and protect your claim. It’s unfortunate, but unless you’re willing to risk your claim being denied, or even terminated, when you need it most. This is the best option we know of.
