Workers’ compensation and social security benefits can impact one another. Recipients need to learn how one can affect the other. First, workers’ compensation benefits are paid to injured workers. The injury must have occurred in the course of employment. Further, comp insurance pays medical bills and a weekly check. The check is based on the workers’ average weekly wage prior to the accident. It is up to the worker to apply for social security disability insurance (SSDI.) If approved, the government may take an offset from workers’ compensation benefits.
The offset kicks in when comp and SSDI benefits are 80% more than what someone made before they were injured. In a few states, the offset is reversed and the workers’ comp benefits may be reduced. This is one reason why an attorney is needed for Work Compensation in Ogden UT. Attorneys will explain the importance of the rules. Indeed, they are important if clients are close to retirement. For instance, some workers may already be receiving Medicare. Also, SSDI can affect a workers’ compensation lump-settlement. The federal government wants to get an off-set on the lump-sum. Attorneys must take certain actions to avoid this. The settlement document must include an amortization statement. The statement explains what the lump-sum equals monthly so there is no offset.
For instance, a fifty-year-old man gets a $50,000 settlement. The attorney uses standard tables to find the client’s life expectancy. Next, the life expectancy is broken down into months. The fifty-year-old man’s life expectancy is 29.5 years which equals 354 months. The settlement amount is divided by the number of months. In this case, the man’s lump-sum benefits equal $141.24 per month. Consequently, there is no offset.
Understandably, workers are not happy with the offset. Many feel that they work hard and deserve workers’ comp and SSDI. Medicare recipients need an advocate if they receive Work Compensation in Ogden UT. That is because the insurance carrier wants workers to set up a special bank account. Money is taken from the settlement to pay for future injury-related medical bills. This money must be used before Medicare pays again. However, Medicare continues to pay other medical bills. The attorney needs to make sure this process is fair for the worker. If you need help, contact Davis and Sanchez PLLC.
