I still remember my accident like it was yesterday. One minute I was driving my daughter to school and the next I was waking up in a hospital bed. It was frustrating to deal with the emotional trauma of forgetting an entire week of my life, in addition to stressing about my small child. Fortunately, we were both able to recover, but it wasn't easy walking dealing with the medical bills that accompanied the accident. I found myself struggling with things as simple as answering the phone, because I was nervous about dealing with another insurance adjuster. Fortunately, by working with a lawyer, I was able to make sense of my situation. I know that you can overcome difficult challenges too, which is why I shared my story on this website.
Working Through Emotional Trauma
How Workers' Compensation Payments Affect Other Government Benefits
Debra Hawkins
Workers' compensation is the system by which employees who are injured or become ill due to work can receive benefits such as medical care and wage replacement. However, many people are unaware that receiving workers' compensation payments could impact other government benefits they may be receiving. A workers' compensation attorney can help you understand the relationship between your settlement payments and government benefits you may be eligible to receive.
Social Security
Workers' compensation payments can affect Social Security benefits in two ways. First, if you receive both Social Security Disability Insurance (SSDI) and workers' compensation, your SSDI payments may be reduced. However, this reduction can't bring your total monthly payments below a certain percentage of your average earnings before you were disabled. Secondly, if you receive Social Security retirement benefits, your workers' compensation payments may reduce your benefits. The good news is that the reduction will only apply until you reach full retirement age. At this time, your monthly Social Security benefits will be recalculated, and your payments will increase.
Medicare
If you are eligible for Medicare benefits, you may be concerned that receiving workers' compensation payments will affect your coverage. Fortunately, workers' compensation does not affect Medicare benefits.
Child Support
If you receive workers' compensation payments and also owe child support, your payments could be garnished. A portion of your workers' compensation payments could be applied to your child support obligation. The garnishment amount varies by state, so it is important to check your local laws.
Unemployment
You are not eligible for unemployment benefits if you receive workers' compensation benefits. You cannot receive unemployment benefits because workers' compensation benefits are temporary and replace lost wages while you recover from your injury or illness. On the other hand, unemployment benefits are for individuals who have been laid off and are actively seeking new employment.
It is important to know how workers' compensation payments can affect other government benefits. While Social Security benefits may be reduced, Medicare coverage will not be affected. Your workers' compensation benefits could be garnished to pay for child support, and they will also make you ineligible for unemployment. By understanding these potential impacts, you can make informed decisions about your finances and ensure that you receive all of the benefits to which you are entitled. If you have questions about how workers' compensation payments may affect your other benefits, reach out to a workers' compensation attorney.
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