Long-Term Disability Required SSD Application and is Claiming Backpay

[cturley969]

Starting in 2002, my employer offered both short-term and long-term disability insurance. All employees were allowed to sign up for these coverages for a bi-monthly premium. In July 2008 I became unable to work because of illness. My physician filed the paperwork to activate my short-term coverage. When I became unable to return to work, he filed to activate my long-term coverage. This coverage guarantees me $1300 per month until I am 65, but I was notified by MetLife that I must immediately file for Soc Sec Disability. MetLife hired an attorney for me (without my approval). My claim was approved after a hearing. Now, not only has the attorney, who never helped me at all, been paid out of my monthly check, but MetLife has notified me that they want ALL of my backpay. My SS check will be $1249, and my MetLife policy says that they must pay me $51 per month to complete my original approved amount. The illness that caused me to be unable to work was not connected to my employer in any way, and is progressive and terminal. I did not think that MetLife could place a claim against me for my backpay. I had paid every premium until I had to leave work. How are they entitled to take my backpay?

[Mr. Knowitall]

When you read the terms of your long-term disability policy I expect you will find that you agreed to apply for SSD in order to keep your benefits and that you also agreed that the SSD payments (including backpay) would be recoverable by the insurance company up to the amount they paid out in disability payments. That type of provision is routine.

Attorney fees are a matter of contract, so if you didn't contract to hire the law firm then they shouldn't be charging you a fee. I cannot imagine, though, how they applied for and obtained SSD without your consent and cooperation. If the insurance company is covering the difference (i.e., you're getting the difference between your SSD payment as reduced by the attorney fees and the amount of the insurance benefit) then you're breaking even.