Unum’s operations for short-term disability have obviously gone from very bad to worse. Twenty years ago, the company made a decision to throw STD claims management in with other products such as LTD, and it’s been downhill ever since. (This is a story in and of itself.) Nevertheless, DCS receives more phone calls about STD mismanagement than any other claims area, and it’s causing hardships for STD claimants.
The practice of managing STD claims under the old Unum Life Insurance regime was relatively simple, and organized. For the last several years, though, Unum’s STD management is chaotic and disorganized, lacking any kind of customer service that actually requires “raising the dead.” Now that the claims process is done remotely, STD payments are erratic, untimely and frankly harassing.
STD really means what it says – short-term, lasting in general 26 weeks for most claimants. The major difference between STD and LTD is that claims handlers request patient notes, pay for several weeks, and then go out for notes again, pay, request notes……it’s an never ending administrative task to keep up with requesting patient notes followed by short period payment of benefits. Add-in disappearing STD reps, and frequent calls to treating physicians, the process isn’t working. In my opinion, claims handlers have to be on top of their game in order to keep up with it all. Not too many can do that anymore.
In the meantime, claimants need regular payments of benefits, but find themselves constantly waiting for late checks because STD claims handlers aren’t requesting records. Many claimants are often denied for long periods of time because their reps either didn’t request, or are waiting for two weeks of STD patient notes before authorizing payment. It’s a madhouse process that no one inside Unum is looking to fix.
Not too long ago entire blocks of STD checks disappeared from the payment center in Columbia, SC. Checks had to be stopped and reissued, which also took Unum some time to fix. In addition, STD may also include more complicated issues such as FMLA, third-party advice to pay, worker’s compensation, severance pay etc. Unum’s “dumb down” STD staff usually are not good at handling other issues either.
What bothers me is that STD reps are also responsible for “initial claim reviews” that verify Plan provisions and claims applications to determine eligibility for benefits. Items such as pre-existing conditions, minimum hours requirement, class determination, Elimination Period etc., are all performed by STD claims handlers that aren’t on their mark. Although LTD also involves such reviews it is still scary to think the first level review is performed by those who are likely to be untrained, and unresponsive to claimant needs.
Unfortunately, Unum’s STD reps are leaving claimants with first impressions of harassment, chaos and disorganization as a first impression of Unum’s ERISA STD management process. More claimants have contacted me about STD than LTD, and that’s a shame, particularly for someone who is new to claims and how things work.
Employers are also fiduciary partners with Unum, but also become confused when Unum messes up STD and fails to pay. STD reps managing FMLA consecutively with STD are also misguided at times.
In my opinion, Unum really needs to get a grip on: 1) direct supervision and management over remote workers, 2) increased oversight of timely customer service issues such as returning calls within 24 hours, and 3) training of STD claims handlers. Although Unum’s problems derive from lack of leadership and proper management, the sporadic locations of remote workers and decentralization are major flaws in its claims process.
Unum’s STD claim management problems are not likely to be fixed any time soon, therefore, claimants must make sure patient notes are frequently forwarded to STD reps and verified received. Right now, STD claims handlers don’t seem to be able to handle what the product requires. And, once again, claimants are victims to Unum’s lack of skill and foresight.
