Disability Insurance

Disability Insurance

Disability benefits pay a portion of your income if you become disabled and are unable to work. You're considered disabled if you’re unable to perform the essential duties of your job because of accidental bodily injury, sickness, mental illness, substance abuse or pregnancy.

LONG-TERM DISABILITY COVERAGE

We provide long-term disability coverage at no cost if you are a full-time, weekend option full-time or weekend option employee.

Pay Taxes Now or Later

Children’s Mercy pays the cost of your long-term disability insurance benefit coverage. However, you must pay any applicable taxes on this benefit. The Internal Revenue Service gives you the choice to pay these taxes now or later:

• Pay now. The taxes associated with your long-term disability insurance benefit are deducted from your paycheck. This means you would pay taxes on the premiums that Children's Mercy is paying on your behalf. The downside to paying taxes now is you pay taxes on a benefit you hope you will never need to use. The upside to paying taxes now is your benefit will not be taxed, if paid. To calculate the bimonthly premium amount, multiply your salary (limited to $300,000) by the rate of .00325, and divide by 24 pay periods. For example, an employee who makes $50,000 annually would pay taxes on $6,77. ($50,000 x .00325 = $162.5; $162.5 / 24 pay periods = $6.77).
• Pay later. If you use your long-term disability benefit, any benefit you receive will be taxed. For example, an employee who makes $50,000 annually would receive a monthly long-term disability benefit of $2,500 and would pay taxes on that amount when paid.

SHORT-TERM DISABILITY COVERAGE

Children’s Mercy pays the cost of your short-term disability insurance benefit coverage. Short-term disability coverage provides 65% (up to $1,500 per week) of your weekly base pay from the time your Extended Illness Time is exhausted or after seven days of continuous leave, whichever is later. The payments are taxable and will continue until the 90th day of your disability or until you are released to work, whichever is earlier. This plan may “fill the gap” until long-term disability coverage is effective.

CRITICAL ILLNESS AND ACCIDENT INSURANCE

You may choose to purchase the following additional benefits:

• Critical illness insurance pays a one-time tax-free payment upon diagnosis of a covered critical illness or condition, such as a heart attack, cancer, stroke or paraplegia.
• Accident insurance provides you with a cash benefit to help pay for expenses resulting from an accident. You may purchase accident insurance without meeting health eligibility requirements as determined by Aflac, the benefit administrator. While your medical plan covers the cost of care following an accident, accident insurance provides you money for expenses not paid by your medical plan, like:
  • Routine expenses, such as your mortgage and utility bills;
  • Expenses related to the accident, such as travel or car repairs; and
  • Medical expenses not paid by your Children’s Mercy medical plan, such as the portion of your deductible after your Health Reimbursement Account (HRA) is depleted, what is not covered by your Health Savings Account (HSA), or coinsurance for your prescription drugs.

You enroll in or cancel coverage at any time throughout the year with or without a qualifying life event. Call a Benefits Communication Specialist at (816) 983-6840 for additional information and prices, and to enroll.