Cancer continues to be the No.1 cause of long-term disability, Unum (NYSE: UNM) reports in its sixth annual review of disability claims. Unum, the leading provider of group disability insurance in the United States, says that cancer was responsible for more than 12 percent of its long-term disability claims in 2006, with breast, colon and prostate cancer as the most prevalent types. For short term disability, pregnancy topped the list.
“The emotional, financial and workplace impact of cancer is significant and it will continue to grow, as the American Cancer Society says the prevalence of cancer will double by 2030,” says Kenneth Mitchell, Ph.D., Unum vice president of health and productivity.
The National Institutes of Health estimates overall costs for cancer in 2006 at $206.3 billion: $78.2 billion for direct medical costs; $17.9 billion for cost of lost productivity due to illness; and $110.2 billion for cost of lost productivity due to premature death.
There has been remarkable improvement over the past 20 years, however, in the survival rates for cancer beyond the five-year mark. The National Cancer Institute reports a 100 percent five-year survival rate for prostate cancer, 89 percent for breast cancer and 65 percent for colon cancer.
“For many, a cancer diagnosis no longer means permanent disability or death,” Mitchell said. “With the success of new screening and treatment protocols, various cancers are becoming more of a chronic disease to be managed. It’s about living beyond the disease.”
Unum’s data reflects this trend. Individuals filing a disability claim for breast, colon or prostate cancer are beating the disease in greater numbers and returning to the workforce. Since 2001, we report the following:
A 96 percent increase in return to work for breast cancer claimants on short term disability, and 14 percent increase for claimants on long term disability
A 65 percent increase in return to work for colon cancer claimants on short term disability, and 24 percent increase for claimants on long term disability
A 72 percent increase in return to work for prostate cancer claimants on short term disability, and 36 percent increase for claimants on long term disability.
For the same time period, Unum reports a dramatic increase in the sales of voluntary critical illness and cancer policies. In 2006, the company sold 85 percent more of these voluntary policies than in 2002.
“It’s good news that cancer care is increasingly effective in improving survival rates,” says Mike Simonds, senior vice president of product development and marketing. “However, the treatment and recovery typically imposes a significant financial burden. Benefits provided through a voluntary critical illness policy can provide valuable financial support during a stressful life experience.”
Top causes of disability absence for 2006
Besides cancer and pregnancy, Unum’s research has identified other leading causes of disability absence in 2006. This annual report on disability trends is based upon 2006 data from the company’s disability database — the largest private database of its kind in this country. The database tracks 26.8 million covered individuals and an estimated 178,000 employer policyholders.
The causes of claims and the percentage received for each cause were as follows:
Long term 12.1 percent – Cancer 11.7 percent – Complications of pregnancy 10.1 percent – Joint/muscle/connective tissue diseases 8.2 percent – Back injuries 8 percent – Cardiovascular disease
Short term 20 percent – Normal pregnancy 9 percent – Injuries (not including back) 7 percent – Digestive/intestinal diseases 7 percent – Reproductive/urinary system diseases 7 percent – Pregnancy (complications)
Unum received more than 400,000 new disability claims in 2006 and paid $4.2 billion in disability benefits to individuals and their families.
About Unum
Unum (www.unum.com), formerly UnumProvident, is one of the leading providers of employee benefits products and services, and the largest provider of group and individual disability income protection insurance in the United States and the United Kingdom. Through its subsidiaries, Unum Group insures more than 25 million people and provided $6.2 billion in total benefits to customers in 2006.
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