Does an overpayment occur in a disability claim?
It is unfortunate that so many people do not realize that the disability insurance company is allowed to offset benefits you receive from other sources, thereby dramatically reducing or even, in some cases, eliminating the benefit claim entitlement. Just about every person who comes to me is surprised to learn that the disability benefits they paid for are not over and above “other benefits” to which they are also entitled. Those “other benefits” which your disability insurance company might claim as an offset against (or, reduction of) your disability benefits might include Social Security Disability benefits, workers’ compensation benefits, disability claims against third parties who cause the disabling medical condition, retirement benefits and others. The governing Plan Documents, “Summary Plan Description” and insurance policy need to be reviewed in detail to determine which “other benefits” can be used to offset benefits. Also, the method by which the deduction can be taken needs to be considered. Issues concerning receipt of lump sums of “other benefits” routinely arise as well.
The strange phenomena I have experienced is that when these other benefits are received, the disability insurance company will simultaneously claim the overpayment and then soon after find a reason to deny the benefits they owe. This may seem somewhat astonishing but that is only because it is. The point being that when you receive “other benefits” from other sources, you need to proceed with caution. The first issue is the correct amount of the overpayment. This is one area in which this author can provide particular assistance because the undergraduate degree I received before going to law school was that of a Bachelor of Science in Business Administration with a major in Accounting. I am not suggesting I can assist you with tax or accounting issues; I just have no problem dealing with numbers which can get quite complicated in these situations.
Please keep in mind that the foregoing about Disability Claims is not intended as legal advice applicable to any individual person’s unique legal situation. Its sole purpose is to give a general idea of the existing status of the law as it applies to the point of law addressed above. You cannot rely on the foregoing as legal advice. You cannot make legal decisions based on its contents. If you have questions arising out of this point of law, you should contact an attorney who routinely handles claims involving policies of disability insurance. The law offices of Herbert M. Hill, P.A. handles such cases and would welcome the opportunity to discuss your case with you, at no charge. You can contact me at 407-839-0005 or at hmh@herbertmhill.com.
If you would like, after discussing your case, we can set a conference. That conference would be free of charge and you would be under no obligation to hire me nor would you feel any pressure from me to do so.
Herbert M. Hill, P.A. is a law firm located in Orlando, Florida with a practice extending throughout the state of Florida and the southeastern part of the United States. Areas of practice include disability and employee benefit claims of all sorts. The firm handles any claims arising under the Employee Retirement Income Security Act (known and referred to as “ERISA”) for disability benefits, medical benefits, retirement benefits of any sort, including pension, 401k, termination agreements or the like as well as claims arising under private disability policies.
