Welcome to the Cover Your Assets (CYA) newsletter! My physician clients are always asking for additional expertise when it comes to financial planning and investments as they proceed in their careers. This monthly newsletter is meant to connect you with these additional resources as well as help build a community among physicians to share their experiences.In this edition, we look at the big issue of physician burnout and its causes, how to approach alt investments, and take a deep dive into what it’s like to file a specialty disability claim.
In the news
Only 32% of physicians under 45 own practices, down from 44% in 2012. This compares to 51% of physicians ages 45 to 55 who are owners. A growing number of physicians now work as employees at health systems and hospitals, rather than in private practice. If you’re an employee physician, check out my episode on why employer-provided long-term disability policies do not have the best interests of their employee physicians at heart
AI transcriptions for medical visits are already proliferating in hospitals despite serious risks of misdiagnoses stemming from their propensity to generate false quotes, including symptoms. The goal of these AI services is “to free up medical providers to spend less time on note-taking or report writing,” but until these hallucinations from generative AI are addressed, reliance on these systems could lead to serious patient harm.
The deep dive: What’s it actually like to file a disability claim against your occupational insurance?
No one expects to become disabled, especially if you’re a young doctor just starting your career. The irony is doctors see people every day who have experienced unexpected and catastrophic occurrences. In this case, you hope that your insurance premiums end up being wasted - that is, you avoid a serious accident or debilitating illness impacting your ability to practice your speciality such that you need your policy.
But if you ever have to file a claim, what is the process?
Fortunately, if you buy specialty occupation disability insurance from one of the four reputable insurers in this space, the process is relatively straightforward if you work with a specialist broker:
1. The disabled physician (let’s refer to him as the filer) fills out a claims form, either directly through your insurance company or else working through your broker if you sign an authorization for your broker to be involved (more on that later).
2. The insurer interviews the filer.
3. The insurer interviews the medical professional treating the filer to validate the medical condition.
4. The insurer interviews the filer’s employer to understand how the disability impacts the filer’s ability to practice their specialty.
5. The insurer validates the filers’ speciality based on the CPT codes they bill for.
6. Finally, the insurance company might conduct an in-person claims examiner, though this is not always required.
Once a claim has been validated, the insurance company starts sending payment for the lost income based on when the disability happened. What’s good for filers is there is typically no time limit from when an injury occurred to when the claim is filed. So let’s say a filer took a year from when the disability began preventing them from practicing their specialty to when they filed the claim, they didn’t miss some unknown filing window, and their first check will usually cover the full time from when their disability began.
Critically, if you buy the right specialty disability insurance, you will get payments for your lost occupation income even if you are able to work in a different specialty or field. The true specialty occupation definition of disability states that if you are unable to practice your specialty or subspecialty you can work in another job and still collect full policy benefits. So let’s say a surgeon injures her hands and can no longer conduct surgeries but she can still teach residents at the hospital, specialty disability insurance will still cover her lost income from being a surgeon even as she earns income in a different job.
This is the big difference versus the disability insurance offered through employers. If a surgeon can no longer be a surgeon but still do clinical hours, for example, most employer-provided disability plans will not go into effect.
So why involve me (or whomever your broker is)?
First, as a broker with decades of experience and connections, I have a direct line of contact to the people reviewing these claims at the insurance companies. A normal filer usually has to go through general 800 numbers to get updates. And if a claim is rejected, it is very hard for them on their own to find out what happened.
For example, one of my clients had a stroke that left him partially blinded in one of his eyes. He initially filed his claim directly with the insurance company and was actually denied. In a last ditch effort, he reached out to me to ask if I could find out what happened. When I spoke directly with my contacts, they explained that my client’s physician had told them that my client said he was fine during a checkup.
In truth, like many doctors, my client had downplayed his own illness. Once his physician understood the true extent of his disability, the insurance company was able to go back and confirm that yes, my client was partially blind in one eye in a way that he could no longer perform his specialty as he had before the stroke.
Second, we know how to mediate the process whereas insurance carriers are not set up to do that. One of my clients had not received her disability payments for some time. We discovered she had missed a key form that had been sent in the mail months earlier, but which she didn’t know she was supposed to be on the lookout for.
As I tell my clients, my job doesn’t stop when you purchase a policy. Your circumstances will continue to change as you progress in your career and in life. My team and I are here to walk with you, providing ongoing guidance and support so you can protect your most valuable financial asset - your ability to practice your field.
Get $100 when you refer a friend
For each qualified lead you send my way to discuss disability insurance (details below), you get a $100 Amazon gift card, even if they don't end up buying a policy through me.
If you know any physicians in your network trying to figure out the right coverage for their situation, all you have to do is send an email introduction (or they can also say you referred them when we get on a call), and then I'll notify you as soon as they qualify. Here’s a link to more information.
Billy Gwaltney
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