Can You Receive Workers’ Comp and SSDI at the Same Time?
After someone has been injured on the job, they expect to receive workers’ compensation benefits. Another program that provides benefits to disabled or seriously ill individuals is known as Social Security Disability Insurance (SSDI) benefits. While both of these programs provide benefits to support individuals who are unable to work due to an injury or medical condition, they differ in eligibility requirements and coverage. Can you receive both workers’ comp and SSDI at the same time?
At Work Injury Advisor, we can help you explore these possibilities and find out if they are an option for you.
The Differences Between Workers’ Compensation and SSDI
When workers are injured on the job, they often qualify for benefits. This state-regulated insurance program provides wage replacement, medical care, and vocational rehabilitation support. However, it covers only work-related injuries or illnesses.
On the other hand, SSDI is a federal program operated by the Social Security Administration (SSA). If a worker has paid into the system and is now unable to work due to a disability or illness, then they might qualify for benefits. In these cases, the injury or illness does not have to occur on the job. However, the person’s disability must be expected to last at least one year or result in death.
Can You Receive Both Workers’ Comp and SSDI?
In some cases, a person can qualify for both worker’s compensation and SSDI, depending on whether they meet both requirements. Keep in mind that receiving benefits could result in a reduction of the Social Security benefits. This is known as an offset, and it prevents anyone from receiving more benefits than if they continued to work on the job.
Currently, the SSA states that the recipient’s compensation from both programs cannot exceed more than 80% of the person’s current earnings before the illness or disability. Once an individual exceeds the threshold, the SSDI payments will be reduced to get back under the limit.
Why Receive Both Benefits?
If you cannot work due to an illness or injury, these programs can provide some financial support. However, they do this in a different way. Workers’ comp provides coverage for medical bills and lost wages related to work injury, while SSDI offers a wide range of long-term support. In many cases, workers can get a continuation of benefits. For example, workers’ comp can help a person receive financial support for shorter-term injuries or illnesses, while SSDI provides a stable income if the condition is long-lasting.
What Are Some Drawbacks?
While it may seem that receiving both of these benefits is advantageous, there are a few drawbacks. Once again, the 80% rule will limit the amount of benefits that you will receive. Also, some workers will get their workers’ comp claim in a lump sum. Often, this can cause issues when it comes time to receive SSDI benefits and the offset calculations. If you want to minimize this impact, it may be possible to structure a settlement to be prorated over a set period of time. In these cases, the payments could be broken down over a few months, which can reduce the offset.
Additionally, there may be problems with tax implications. Workers’ compensation is usually not taxable. However, that cannot be said for the SSDI. Sometimes, there could be a chance of owing taxes on the total income of the disability payments.
What Happens When Workers Comp Ends?
If your workers’ comp benefits are ending, you need to know what to expect. After your workers’ comp benefits terminate, SSDI benefits may increase if the offset calculation changes. In turn, this could lead to an increase in your monthly SSDI amount. However, you may need to undergo periodic medical reviews to verify that you continue to meet disability requirements for SSDI.
Do I Need a Lawyer to Receive Both Benefits?
While it is not a requirement, you may want to consult a lawyer to ensure you receive all your entitled benefits. These legal professionals can help to make sure your claims are accurately filed and supported by thorough medical documentation. In turn, that can reduce the risk of delays or denials.
Along with that, they can also structure workers’ comp settlements to minimize the SSDI offset. With that, you might be able to receive more consistent monthly benefits. Additionally, an attorney can assist with appeals if claims are denied and represent you during medical reviews to help prevent interruptions in benefits.
Beyond these programs, they may identify other support programs like private disability insurance or vocational rehabilitation.
If you are looking for a law firm to help with these matters, turn to a workers’ compensation and social security disability benefits lawyers for assistance.
