Ltd /ssdi Question

[Tommyhoney]

Hi all,

First I'll apologize, I know this topic has been addressed plenty of time, but quite honestly I don't have the energy for a search right now..... I've been on Long term disability for a year now, I paid into my employer (previous) for this coverage. I've been turned down by SSDI, and am waiting (2 yrs I'm told) for a hearing.

LTD company is now doing a review, and one of the things they want me to sign, is to either take a cut in payment now, or agree to pay them the difference when/if SSDI does kick in. I don't understand, when I paid for this private insurance, why this has to do with SSDI at all. Is it time to get an attorney?

Thanks in advance for any thoughts on this.

Tommy

[Dawg Tired]

I noticed on my LTD there was a clause that said if I started getting SSDI then the LTD would deduct the amount of the SSDI payment from the amount I received from them. However... Since LTD kicked me off after their review it never came to that. They decided my "condition did not meet their criteria". My SSDI lawyer filed suit against them but it never went anywhere. just another way for the "system" to mess with us.

[potsgirl]

Unfortunately, this is common practice with LTD plans. If you are approved for SSDI, which I was once we went to court last month (took 1 1/2 years to get there), your LTD usually has the right to get a portion of your SSDI money that's owed to you from the time you filed until your case is approved, if you receive those monies. Look closely at your LTD plans. Most of them do this, which really is not fair, and yet one more way the system takes more away from us.

Sorry couldn't be more cheerful. PM me if you'd like more info. I just applied for continuation of my LTD, too.

Jana

[janiedelite]

I know this is confusing, especially since we're so exhausted all the time anyway. But I've been receiving LTD since 7/07 and recently went to review (had to send in a bunch of documentation again) and they approved me for another year. My mom has also been receiving LTD (for cancer) from a different company and has been granted SSDI. Both of our LTD companies will subtract your SSDI payment from your monthly LTD benefit. It says so in their contract.

However, they should NOT require you to lessen you monthly payment until you receive SSDI. I was denied twice and have been awaiting a hearing for over a year now. If I get approved for SSDI, then I'll eventually get a large backpayment from the government for the months I should have been found eligible. Don't spend that money! Your LTD company has the right to get reimbursed for what they term "overpayment" which is the amount SSDI paid you pretty much. Once you start receiving SSDI, the LTD company will subtract their payments from your benefit. So you won't see any pay increase once you win SSDI. But getting approved will allow you to receive Medicare and other benefits.

Please PM me for any questions about maintaining your LTD benefit or anything else.

[potsgirl]

That's right...I remember my lawyer telling me that now. I don't expect to see any money from SSDI for another 4 months or so (per my lawyer), but I know that LTD and her payment comes out of that initial back payment. And that the amount of money stays the same once you begin receiving SSDI payments, since LTD makes up the difference between the SSDI and the LTD. Hmmm, I'm still not writing very clearly. Thanks for doing such a good job making this all sound more simple and straightforward, Thankful!

Cheers,

Jana

[EarthMother]

I'd have to wonder why your LTD is asking for a signature now. Could be they lost a case recently. Perhaps their original contract was poorly worded and they are trying to tie up loose ends. If you already have an attorney for your SSDI, the LTD letter and copy of original LTD plan might be worth a review.

Getting a copy of the original LTD plan is a good idea for all of us. And not that little summary you get in your employee packet -- but the actual agreement of coverage between the LTD and your employer. When I was awarded SSDI this past winter, my husband called my former employer's benifts department and asked that a copy of the policy (from 2007 when I left my job due to illness -- since 2007, my previous employer had change insurance carriers so it was important we got a copy of the one that applied to my case.)

My husband was able to go through the document and get a better understanding about the SSDI vs LTD payment -- as well as definitions some other definitions regarding illness criteria.

And in my case for the policy under my LTD, they not only take all of the back pay and my SSDI going forward, but also the SSDI checks that come to my 2 children still under 18. Sounds odd. But LTD is suppose to support you at a certain level of your previous salary (and continue to pay your company retirement benefits in some cases). So as long as you continue to qualify under the criteria of their LTD plan that bottom line percentage doesn't change. Which is fine for most of us because it does represent more than SSDI. What we do get with SSDI is eligibility for medicare (2 years after the onset of our illness) and that is a real boon.

Good luck finding out more about why you are being asked to sign a new agreement.

[potsgirl]

Amen.