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Long Term Disability and Social Security

Discussion in 'Health Insurance, HMO, HIPAA & Disability' started by NoLeagleBeagle, Jun 26, 2009.

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  1. NoLeagleBeagle

    NoLeagleBeagle Law Topic Starter New Member

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    Hi all

    My wife has been on long term disability for quite some time now, and we have been receiving monthly payments from a large insurance company. We were required by law to apply for Social Security benefits, for which we did not think we would be eligible but nevertheless dutifully filled out all the forms and sent them in as requested. Then out of the blue we were asked to go to the Social Security office, where they informed us that we were indeed eligible and gave us a bag of money for retroactive payments (I know it sounds great but I'm suspicious: this kind of thing never ends well). Yesterday a letter came from the insurance company requesting a copy of the Social Security settlement letter, as they will be requesting reimbursement for the payments they made to us that were retroactively covered by Soc Sec.

    I imagine we will have to give them the money, but I want to know my rights, and I'm certainly not going to ask the insurance company. I don't know how much we're responsible for, how much they can ask for, how much they're entitled to, or anything like that. Since we have been paying Soc Sec taxes, and have also been paying the insurance premium, from my point of view I don't see any problem with both of them now paying us.

    What do people here think? Has anyone had experience with this sort of thing? Should I hire a lawyer for consultation? Thanks for any help.
     
  2. cbg

    cbg Super Moderator

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    It is very, very common (and quite legal) for the benefits from a private (or employer's) LTD policy to be offset by Social Security benefits. What would be surprising would be if they did NOT ask for repayment.
     
  3. NoLeagleBeagle

    NoLeagleBeagle Law Topic Starter New Member

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    Hi again

    I do understand that's it's legal, and I'm sure it's common. As a matter of fact I sort of expected it since it was the insurance company that wanted us to apply for Soc Sec benefits, and I don't think they were concerned with our well-being by having us do so. What I'm wondering about is what rights (if any) we may have. I'm also wondering if we should hire a lawyer for a consultation on this, or if it would be a waste of time and money. I've learned the hard way not to ask an insurance company if I have any rights in such a matter. As I wrote previously, I do expect to have to turn the funds over, and I am willing to, but I just want to know a bit more about it before I do so.

    Thanks for your help.
     
  4. cbg

    cbg Super Moderator

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    I am not aware of any legal basis you may have for refusing, or any "rights" that are being violated. This is spelled out in just about every disability policy I have ever seen, and I have seen a great many.
     
  5. deuce22

    deuce22 New Member

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    Hello,
    I have another question regarding this issue. My aunt is in a similar situation as Nolegalbeale's wife, except she applied for social security disability on her own and not on the recommendation of her LTD insurance company. She has been approved for social security disability. I feel that it is unfair for LTD to subtract social security disability because my aunt paid for each one of them separately as different entities via deductions from her paycheck. Here is my question: What if my aunt does not disclose her social security disability payments? Would her LTD insurance be able to find out if she has been approved for social security disability? I just dont think its fair is all...
     
  6. deuce22

    deuce22 New Member

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    Question regarding SSD and LTD

    Hello,
    I have another question regarding this issue. My aunt is in a similar situation as Nolegalbeale's wife, except she applied for social security disability on her own and not on the recommendation of her LTD insurance company. She has been approved for social security disability. I feel that it is unfair for LTD to subtract social security disability because my aunt paid for each one of them separately as different entities via deductions from her paycheck. Here is my question: What if my aunt does not disclose her social security disability payments? Would her LTD insurance be able to find out if she has been approved for social security disability? I just dont think its fair is all...
     
  7. cbg

    cbg Super Moderator

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    Does the word, fraud, mean anything to you?
     
  8. Green_Hornet

    Green_Hornet New Member

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    No your aunt has to disclose it to the insurance company, the insurance company is going to find out any way if she discloses or not. Now as far as repayment in either your's or your aunts case you have to repay them but you don't have to hand them over all the money at once. You can set up a payment schedule.

    Be glad you were excepted for SSDI I have seen cancer patients less than 90 days to live rejected. SDI expires SSDI does not.
     

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