When you’ve been injured on the job, it’s possible to qualify for both Workers’ Compensation and Social Security Disability Insurance (SSDI). However, navigating the rules surrounding these benefits can be complex, and maximizing the financial assistance you receive requires careful planning.
This guide explains whether you can receive both Workers’ Compensation and SSDI, as well as strategies to help you maximize your benefits. Contact PLBH at (800) 435-7542 for a free legal consultation.
Understanding Workers’ Compensation and SSDI
Workers’ Compensation and SSDI are two separate programs designed to provide financial assistance to employees who are unable to work due to injury or illness. While both programs provide compensation for lost wages and medical expenses, they operate under different systems.
Workers’ Compensation
Workers’ Compensation is a state-regulated program that provides benefits to employees injured or made ill in the course of their work. It typically covers medical expenses, lost wages, and vocational rehabilitation. Benefits are usually paid by your employer’s workers’ compensation insurance carrier.
SSDI
Social Security Disability Insurance (SSDI) is a federal program that provides benefits to individuals who are unable to work due to a long-term disability. Unlike Workers’ Compensation, SSDI is not limited to work-related injuries. However, to qualify, you must meet specific requirements related to your work history and the severity of your disability.
Can You Receive Both Workers’ Compensation and SSDI?
Yes, it is possible to receive both Workers’ Compensation and SSDI benefits simultaneously, but there are some limitations. When receiving both types of benefits, your SSDI payments may be reduced due to the workers’ compensation offset rule.
What is the Workers’ Compensation Offset Rule?
The Social Security Administration (SSA) limits the amount of combined benefits you can receive from Workers’ Compensation and SSDI. In general, your total benefits cannot exceed 80% of your pre-disability income. If your combined benefits surpass this threshold, your SSDI payments will be reduced accordingly.
Example of the Offset Rule
Let’s say your average earnings before your injury were $4,000 per month. The 80% limit means your combined Workers’ Compensation and SSDI benefits cannot exceed $3,200 per month. If you receive $2,000 per month in Workers’ Compensation benefits, the maximum SSDI benefit you can receive is $1,200.
Strategies for Maximizing Your Benefits
If you’re eligible for both Workers’ Compensation and SSDI, there are legal strategies that can help you maximize your total benefits. Working with an experienced attorney from PLBH can ensure that you receive the maximum financial assistance possible.
1. Structured Settlements
One common strategy to reduce the impact of the workers’ compensation offset is to negotiate a structured settlement. A structured settlement allows your Workers’ Compensation benefits to be paid out over time rather than as a lump sum. By spreading out the payments, you may be able to reduce the amount of your SSDI offset.
2. Allocating the Workers’ Compensation Settlement
Another strategy involves how your Workers’ Compensation settlement is allocated. If the settlement is structured as compensation for future medical expenses or future lost wages, it may reduce the impact of the SSDI offset. By working with a skilled attorney at PLBH, you can structure the settlement in a way that minimizes the reduction of your SSDI benefits.
3. Appeal an Unfavorable SSDI Decision
If your SSDI benefits are significantly reduced or denied due to the offset rule, you have the right to appeal the decision. A workers’ compensation attorney can help you navigate the appeals process and present a strong case for receiving the full benefits to which you’re entitled.
Factors to Consider When Applying for Both Benefits
While it is possible to receive both Workers’ Compensation and SSDI benefits, there are some important factors to keep in mind during the process.
Timing of Benefits
The timing of your application for SSDI benefits can affect your total compensation. There is a five-month waiting period before SSDI benefits begin, and you must have a long-term disability expected to last at least one year to qualify. Applying for SSDI as soon as you realize your injury may result in long-term disability can help minimize financial gaps.
Medical Documentation
Strong medical documentation is crucial when applying for both Workers’ Compensation and SSDI benefits. Make sure your medical records clearly state the severity of your injury and your inability to work. These records will play a key role in determining your eligibility for both types of benefits.
Working with a Legal Professional
Navigating the complexities of receiving both Workers’ Compensation and SSDI can be overwhelming, especially when trying to maximize your benefits. Working with an attorney who understands both programs can help you avoid costly mistakes and ensure you receive the compensation you deserve.
At PLBH, we have the experience and knowledge to guide you through the Workers’ Compensation and SSDI processes. Our team will work to structure your settlements, gather the necessary documentation, and represent your best interests. Contact us at (800) 435-7542 to discuss your case and start maximizing your benefits today.