How will accepting a personal injury settlement affect SDI?

[LynHall]

Jurisdiction

California

I have been on SDI for several years. Two years ago, a car swerved into my lane and hit my car head-on. The other driver's insurer has finally offered a settlement that will cover my hospital bills, which are in the hundreds of thousands. I'm not sure how much will be left after settling the bills. Probably about $3000, but it might be more.

How will accepting the settlement affect my SDI?

If it matters, I went on SDI a couple of decades ago after a serious workplace injury in my early 30s that left me in constant pain and unable to walk without a cane. The car accident left me unable to walk any distance even with a cane.

 

[KatDini]

SDI is a short-term program, so not sure how you've managed to be on it for several years (or decades?). Perhaps you mean SSI or SSDI (which are federal, not governed by the state).

SDI does not seem to count settlement money as income.
FAQ Disability Insurance (DI) Benefits .

For the federal benefits, SSDI does not consider income as it is not needs-based, but rather based on work history. SSI is needs-based, so if you are on that program, the money will be considered income (and dependent on how much money) may affect benefits.
https://www.ssa.gov/pubs/EN-05-10024.pdf

 

[LynHall]

You are correct. I am on SSDI.Thank you.

 

[zddoodah]

Two years ago, a car swerved into my lane and hit my car head-on. The other driver's insurer has finally offered a settlement that will cover my hospital bills, which are in the hundreds of thousands.

If it's been two years and the accident occurred in California, I sure hope you have already filed a lawsuit. Did the other driver have a policy with limits greater than $100k for injuries to a single individual (or an umbrella policy)?

I'm not sure how much will be left after settling the bills. Probably about $3000, but it might be more.

What are you talking about? How much what will be left?

How will accepting the settlement affect my [SSDI]?

This is obviously something to discuss with your attorney before agreeing to accept any settlement.