2025 Insurance Trends: What Brokers Need to Know About Disability Coverage for Doctors

The insurance landscape is evolving rapidly, bringing new challenges and opportunities for brokers serving doctor group practices. Here’s what you need to know about key trends shaping the market in 2025. 

1. State-Mandated Leave Programs Expand

The landscape of paid family and medical leave continues to grow, with multiple states implementing comprehensive programs. This expansion creates new complexities for doctor groups, particularly in how these programs interact with existing disability coverage. The need for an integrated absence management solution will be critical.   

State programs vary significantly in their approach. Many states now have mandatory paid family leave systems, and additional states have voluntary systems through private insurance. Most programs provide 12 weeks of leave with wage replacement rates between 60-90%. Job protection varies by state, with requirements ranging from 90 to 180 days of employment. 

For medical practices, this evolving landscape presents both opportunities and challenges. Each state program has unique features that affect implementation: 

• Funding Mechanisms: States like Maryland and Minnesota require both employer and employee contributions (50/50 split), while others place the burden entirely on one party 
• Coverage Types: Most states mandate multiple types of leave, including parental, family caregiving, and personal medical leave 
• Integration Requirements: Practices must coordinate these programs with existing disability coverage and FMLA policies 
• Administrative Complexity: Implementation timelines vary, with some states requiring payroll deductions to begin months before benefits become available 

Key state leave-management milestones for 2025 include: 

• Delaware: Employee payroll deductions begin January 1, 2025, with initial contributions due April 30 
• Maine: Contributions start January 1, 2025, with benefits accessible May 1, 2026 
• Maryland: Program launches July 1, 2025, with initial contributions due in October 
• Minnesota: Benefits and payroll deductions begin simultaneously on January 1, 2026 

Broker Tip: Help medical practices integrate these mandated programs with existing disability coverage to prevent gaps or overlaps. Review policies early, as implementation requires advance preparation starting in 2025. Partner with insurance carriers offering an integrated leave management approach to support group practices.  

Create a timeline for each affected practice that includes: 

• Key compliance dates 
• Required system updates 
• Employee notification requirements 
• Integration with existing benefits

2. Voluntary Benefits Surge

Research shows a dramatic increase in voluntary benefits participation, with Voya reporting 63% employee interest, up from 45%. This trend is particularly significant for medical practices, with an evolving market: 

• Critical illness coverage expanding to 80% of employers 
• Hospital indemnity coverage reaching 71% 
• Growing interest in specialty-specific coverage 
• Increased focus on income protection at various career stages 

Key drivers of this increase are rising healthcare costs, increased awareness of income protection needs, more diverse workforce demographics, and demand for customizable benefits. A desire for “a-la-carte” benefits will push employers, and the carriers and enrollment platforms who partner with them, to reevaluate the structure of a benefits package and consumer demand.   

A few coverage considerations play a role: 

• Income replacement needs vary by specialty 
• Practice ownership impacts coverage requirements 
• Different needs across career stages 
• Integration with existing individual coverage

Broker Tip: When discussing voluntary benefits with doctor groups: 

• Review IDI coverage gaps as incomes grow 
• Address practice ownership protection needs 
• Consider coverage for advanced practice providers 
• Evaluate integration with state disability programs 

3. Customized Benefits Take Center Stage

The medical industry’s approach to employee benefits is evolving rapidly. According to research, employers are prioritizing comprehensive solutions with an increased focus on employee education and benefit customization, growing demand for non-traditional benefits like mental health and wellness options, a need for better communication from employers regarding plan details, and a growing trend towards online enrollment platforms while still maintaining access to in-person support for those who need it.  

We expect to see a shift to an a-la-carte approach to benefits, in general (which will require the right products and the right enrollment platform). Employers are offering more diverse plan options to cater to different employee needs based on demographics and work situations (remote vs in-office). In addition, employees are increasingly valuing benefits like mental health coverage, wellness stipends, and flexible work arrangements.  

This shift is particularly relevant for medical practices where: 

• Doctor burnout rates reach 62.8% 
• Mental health stigma often prevents seeking care 
• Work-life balance remains a significant challenge 
• Financial wellness increasingly connects to overall health 

The shift also poses opportunities for Implementation: 

• Integration of mental health services into primary coverage 
• Enhanced EAP programs with specialized doctor support 
• Financial wellness programs addressing student debt 
• Flexible scheduling and sabbatical options 
• Preventive care incentives

Broker Tip: When designing benefits packages for medical practices: 

• Emphasize confidential mental health resources 
• Include wellness programs that address doctor-specific stressors 
• Incorporate financial planning support for early-career doctors 
• Consider practice-wide wellbeing initiatives that support all staff levels 
• Utilize an enrollment platform that digitizes the process and provides education

4. Digital Distribution Channels Evolve

The insurance industry’s digital transformation is reshaping how coverage is purchased and managed by consumers, as well as how brokers utilize new technologies to create efficiencies and scale.   

For direct consumers, this trend includes carriers expanding an online presence through comparison platforms and digital marketing to enable direct customer interaction and policy purchases. Leveraging data analysis and artificial intelligence allows carriers to better understand customer needs, personalize offerings, and optimize marketing campaigns. In the group space, it provides employers the opportunity to provide education through online enrollment platforms to engage employees and drive buying decisions.   

For brokers, this also means utilizing software such as ThreeFlow to aid in buying decisions of commoditized products. This type of software can bring clients better benefits by evaluating markets faster, and data-driven benefits placement creates efficiencies and helps to scale a brokerage practice with workflows that are repeatable.  

Broker Tip: When evaluating digital platforms: 

• Use broker buying-decision software that offers scalable, repeatable processes and an ease of business 
• When choosing enrollment platforms, ensure that digital tools (calculators, videos, comparisons, etc.) are robust 
• Encourage use of online enrollment platforms that avoid costly paper enrollments

5. AI Technology Begins to Transform Insurance Operations

Artificial intelligence is starting to influence core insurance processes, marking the beginning of a broader industry transformation, but further testing and implementation is still on the horizon for 2025. According to research by Oliver Wyman/Celent, “The speed at which the technology is evolving requires leaders and teams to “learn as they go,” both around “what to do” and “how to implement the models, tools, and solutions.”” Insurers will continue to explore and scale certain solutions in order to stay ahead of the curve. 

The impact of AI spans several key operational areas: 

Automated Underwriting 

• Machine learning models analyze complex medical histories more efficiently 
• Real-time risk assessment capabilities 
• Faster application processing for routine cases 
• More precise risk evaluation for doctors in different specialties 

Claims Processing Enhancement: 

• Automated claims validation and processing 
• Intelligent fraud detection systems 
• Streamlined documentation review 
• Faster turnaround times for standard claims 

Customer Service Innovation: 

• 24/7 automated support for routine inquiries 
• Natural language processing for policy interpretation 
• Personalized communication based on practice patterns 
• Enhanced accessibility to policy information

However, implementation challenges remain significant and will continue to be studied in 2025.  These challenges include data security concerns, especially with sensitive medical information; the need for transparency in AI decision-making; integration with legacy systems; and maintaining the human touch in complex cases. The use of AI is not a one-size-fit- all solution for many insurance carriers, especially those who offer a more specialized product and servicing approach.   

Looking ahead to 2025, key developments include more sophisticated risk modeling for specialized medical practices; enhanced integration between AI systems and practice management software; improved predictive analytics for claims trends; and greater customization capabilities for doctor-specific coverage 

Broker Tip: When discussing AI-enhanced products with doctor group clients: 

• Emphasize how automation improves efficiency while maintaining decision transparency 
• Show how AI tools can provide faster claims processing without sacrificing accuracy 
• Address privacy concerns proactively, particularly regarding medical data 
• Highlight the balance between automated processes and human oversight in complex cases 
• Demonstrate how AI can help identify coverage gaps based on practice patterns

6. Advanced Practice Clinicians Drive Growth

With a projected doctor shortage of 124,000 by 2034, advanced practice clinicians (APCs) are becoming increasingly crucial to medical practices. There are 248,000 Nurse Practitioners, 115,000 Physician Assistants, and 59,000 CRNAs practicing in the US. The number of APCs has been growing and now accounts for a quarter of all healthcare visits in the US. Several factors drive this growth, including increased demand for healthcare, doctor shortages, cost-effectiveness, and expanding the scope of APC practices.  

APC compensation has gone up almost 15% since 2022. APC compensation has also shifted from hourly to salary-based; APCs now have incentives based on productivity, patient satisfaction, and other factors similar to doctors; and there are variations based on specialty and geography, which often drive increases higher.  Many states grant full practice authority, allowing APCs to diagnose, treat, and prescribe directly to patients. However, through 2025 we expect legislative changes from groups such as the American Medical Association, which deems the expanded capabilities of APCs as “scope creep”.  

These factors dictate the specialized coverage needs of this growing market.  As APC compensation continues to grow and APCs appear on bills, this cohort requires specialized disability definitions and offers carriers the opportunity to provide income protection at various levels.   

Broker Tip: For practices employing advanced practice clinicians: 

• Structure tiered coverage reflecting different roles 
• Address scope of practice in disability definitions 
• Consider group/individual coverage combinations 
• Review state-specific practice requirements 
• Help practices attract and retain top talent through comprehensive coverage

Looking Ahead

The convergence of these trends creates both challenges and opportunities for brokers serving doctor groups. Success requires understanding doctors’ unique needs while adapting to changing market dynamics. Solutions like MGIS’s Disability Guard for Doctors™ help bridge coverage gaps while providing the specialized protection doctors need. 

Remember: As your doctor clients’ careers advance, their coverage needs evolve. Stay ahead of these trends to position yourself as a trusted advisor in this dynamic landscape.