Source: Employer Measures of Productivity, Absence and Quality website (www.EMPAQ.org) Sep 4, 2010

About Long-Term Disability

Long-term disability (LTD) benefits provide income to employees who are still disabled after their short-term disability or salary continuation benefits end.

Typically, LTD benefits are paid as a percentage of salary, can continue until the age 65, and are usually offset by social security disability income, workers' compensation and disability pensions.

EMPAQ® Metrics

EMPAQ® metrics are ratios (i.e. numerators over denominators) that can be used to calculate the effectiveness of health and productivity management programs. They establish a consistent method for measuring cost, utilization and other performance issues.

When you submit data to EMPAQ®, the secure online data submission tool will automatically calculate metrics for you. Simply enter your data (i.e. numerator and denominator values) into the tool and EMPAQ® will calculate the metrics for analysis and reporting. The results will be delivered to you as a set of benchmarking and decision-support reports.

EMPAQ® LTD Metrics

There are 2 EMPAQ® LTD metrics.

Metric Ratio Explanation
Cost per Claim
Cost per Claim = Total LTD Payments
Number of Active LTD Claims
This metric calculates the per claim cost of LTD coverage for a defined period of time.
Annual Claim Incidence
Annual Claim Incidence = Number of New LTD Claims
Average Number of LTD Covered Employees		 × 1000
This metric calculates the number of new claims per thousand covered employees incurred during a defined period of time.


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