It depends. Folks who receive Social Security Disability need those monthly benefits—it might be the only income you can get due to a disabling health condition or prior injury. The law doesn’t discourage Social Security Disability recipients from seeking justice, but you’ve got to protect your rights—or your settlement could create a financial strain you can’t afford. Protect your rights. If you're worried a South Carolina accident injury settlement could stop your disability payments, get your questions answered in a free, no pressure strategy session with a Spartanburg, SC personal injury attorney. Call toll free at 888-230-1841 or fill out a
Get Help Now form. If you’re hurt on the job, monthly Social Security benefits can be reduced by your
workers’ compensation settlement, even if you don’t get Social Security until after your workers’ compensation case is over. But there’s good news! An experienced workers’ compensation attorney will know how to minimize that reduction with an
important legal maneuver. The resulting money put back in your pocket makes the workers’ compensation case well worth pursuing. Any other accident settlement may impact you, depending on the type of benefits you're getting. One important thing to remember if you’re on disability—don’t forget Medicare or Medicaid, because they won’t forget you. You’ve got a looming disaster hanging
over your case if you don’t properly protect Medicare or Medicaid’s rights. And if you’re on Medicare, your case may require a complicated negotiation with Medicare about future medical treatment related to your injury, called a Medicare Set-Aside. The
takeaway here is, Social Security Disability recipients are just as worthy of compensation for your medical bills and injuries as anyone else, but your case has an extra wrinkle for those disability benefits. Ready to talk to a lawyer about SSD benefits? Call us at 864-582-0416 or fill out a contact form with your information.Here’s How an Accident Settlement Could Affect Your Social Security Disability Benefits
If You’re Seriously Hurt and On Social Security Disability, Don’t Risk It Going Alone
Though you have the right to pursue your case, you’ve still got to make sure you do it right—and be certain you protect your Social Security Disability rights at the same time. Here are the best reasons to hire an injury attorney or car accident attorney.
If you’re on Social Security Disability and get seriously hurt, your case has a lot of moving parts. Get started now on free advice from a professional who’s experienced at solving problems like yours. It will only cost you a little time to get your questions answered—call us toll-free at 888-230-1841 or fill out a Get Help Now form for a free strategy session about your case.
For more information on your case, be sure to download our FREE BOOK on crash cases and FREE BOOK on workers' comp cases, which we provide as a service to folks like you.
You can also scout us out with real client reviews on an attorney review service we don’t own.
Related Links:
- How a South Carolina Personal Injury Settlement Works
- What Compensation Is Available in a Personal Injury Claim?
- What Are My Rights Under Workers' Compensation?
- Is There a Deadline to File for Workers' Comp?
SSR 82-23: SECTIONS 1602 and 1612(a) (42 U.S.C. 1381a and 1382a(a)) SUPPLEMENTAL SECURITY INCOME -- UNEARNED INCOME -- DISABILITY BENEFITS
20 CFR 416.1102 and 416.1121(a)
SSR 82-23
The claimant applied for Supplemental Security Income (SSI) benefits as a disabled individual. His disability resulted form an accident, which occurred on June 19, 1980. The claimant has received $95.00 per week in disability benefits from an insurance company since the date of the accident. When the Social Security Administration (SSA) determined that the claimant was ineligible for SSI benefits because his income exceeded the statutory limit, he appealed. The claimant alleged that he had filed a third party action against the person he claims was responsible for his accident. If the claimant is successful in his lawsuit, the insurance company, which has filed a lien under applicable State law against the proceeds of any recovery from a third party by the claimant, will be entitled to recover the full amount of the disability benefits that it has paid to the claimant. Because of the lien, the claimant contended that the weekly payments made to him by the insurance company constituted a loan and thus should not be considered income for SSI benefit purposes. Held, the payments made to the claimant by the insurance company did not constitute a loan because, under section 1612(a)(2)(B) of the Social Security Act (the Act) and 20 CFR 416.1121(a), those payments were considered unearned income. Consequently, the claimant was ineligible for SSI benefits because his income exceeded the statutory limit.The general issue is whether the claimant was eligible for SSI benefits as defined in the Act. The specific issue is whether the disability payments made by an insurance company can be considered a loan or must be counted as unearned income under title XVI of the Act.
The claimant, who became disabled on June 19, 1980, as a result of an accident, applied for and was determined to be entitled to a period of disability and Disability Insurance Benefits. He was also found to be disabled for SSI purposes.
The claimant has been receiving $95.00 per week in disability benefits from an insurance company since his accident. The insurance company has filed a lien, pursuant to Section 277 of the New York State Insurance law, against the proceeds of any recovery from a third party by the claimant. The claimant and his attorney have stipulated that they have filed a third party action against the person they claim was responsible for the claimant's accident. In the event that the claimant is successful in this lawsuit, the insurance company will be entitled to recover the full amount of the disability benefits that is has paid to the claimant.
The claimant and his attorney both contended that the weekly disability benefits paid to the claimant constituted a loan because of the lien. If the claimant is awarded money damages, the insurance company will be paid the amount of its lien. Therefore, it is the claimant's contention that since his disability benefits are subject to repayment if his lawsuit is successful those benefits should not be considered income and thus he should be eligible for SSI benefits.
Section 1602 of the Act provides that each aged, blind, or disabled individual who is determined to be eligible on the basis of income and resources shall be considered an eligible individual for SSI benefits under title XVI of the Act.
Section 1612(a) of the Act provides that income means both earned income and unearned income.
Section 1612(a)(2)(B) of the Act provides that unearned income includes any payments received as an annuity, pension, retirement, or disability benefit, including veterans' compensation and pensions, workmen's compensation payments, old-age, survivors, and disability insurance benefits, railroad retirement annuities and pension, and unemployment insurance benefits.
Section 416.1102 of Regulations No. 16 provides that income is anything a person receives in cash or in kind that a person can use to meet his or her needs for food, clothing, or shelter. In-kind income is not cash, but is actually food, clothing, or shelter, or something a person can use to get one of these.
Section 416.1121(a) of Regulations No. 16 provides that some types of unearned income are annuities, pensions, and other periodic payments. This unearned income is usually related to prior work or service. It includes, for example, private pensions, Social Security benefits, disability benefits, veterans benefits, worker's compensation, railroad retirement annuities, and unemployment insurance benefits.
The law and regulations are quire clear and precise in providing that any disability benefits paid to a claimant are considered unearned income, and if total countable income (including disability benefits) exceeds the amount stated in the law, the claimant is ineligible for SSI benefits. Therefore, SSA concluded that the payments made by the insurance company to the claimant did not constitute a loan, but were disability benefits, even though the insurance carrier has a lien against the proceeds of any recovery from a third party by the claimant. Consequently, the disability benefits that were paid to the claimant must be counted as unearned income for SSI benefit purposes. Accordingly, SSA concluded that the claimant was not eligible for SSI benefits because his income exceeded the statutory limit.
Back to Table of Contents