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  1. #1

    Question When is Long-Term Disability Entitled to Reimbursement from SSDI Lump Sum Payments

    I have been receiving LTD payments (from a previous employer's LTD carrier) for a few years. After the first year, I was suddenly told that in order to continue receiving said benefits, I had to apply for SSDI, which I did. The LTD company paid for an attorney who just absolutely destroyed my case and obviously lost. Shortly after the denial, the LTD company again told me that I had to reapply and "try again" otherwise my benefits would be terminated, so I applied again. This time around I represented myself, completed all the documentation, researched disability law up, down, and sideways, and won my hearing.

    So now, the LTD company wants the money I received in the lump sum IN FULL to pay back what they paid out, which I understand, minus how they decided that they were entitled to all of it. But I've hit a few bumps and need some opinions.

    1. My child is also receiving benefits and I have been appointed the representative payee. I've opened the bank account under my child's name, been keeping track of his spending, etc. The LTD company says they are fully and completely entitled to all of the back pay that was paid out to my child. That money came separately from SS, was deposited into my child's account, and any correspondence/mail involving the monthly payments or back pay comes under my child's name only. I've been told that LTD would not be permitted to take any of my child's money because it's paid out to only my child (not me) and, although the eligibility came with my approval, the money is separate and not for my use. Does the LTD have a leg to stand on with regards to this money?

    2. The LTD company wants copies of ALL the paperwork from Social Security. I don't see the need to have access to every possible document as it's just a matter of money that's at hand. They've repeatedly sent me release of information forms for me to sign in which they already included the statement that they would be allowed "full and complete" access. I've never signed anything or agreed to any release for the above mentioned reason. Am I correct that the LTD doesn't need any direct access to my information? Wouldn't sending copies of documents from SS suffice?

    3. The LTD is also telling me that no monies could be held and "paid" to me for all the work I did to get approved. I'm not asking for an offset equivalent to what an attorneys fees might be, but it seems like I should be able to get some credit on this.

    AND THE BIGGIE:
    4. The LTD company "does not have" specific documentation pertinent to my case/coverage. My employer selected the LTD company, but I paid the premiums. Wouldn't there be SOMETHING in writing that includes the specifics of the policy? I keep getting told no such document exists because the policy is between my employer and the LTD, therefore there is nothing "specific" to ME as a person. And that any information held within the policy is private and would not be anything I could view, even pieces of.

    So basically they, the LTD company, wants money, ALL of the money, including what was paid to my child, and they have no documentation to provide to me to show anything they're asking for is legitimately due to them.

    Help?

  2. #2
    Join Date
    Oct 2006
    Posts
    15,199

    Default Re: Repaying Ltd After SSDI Lump Sum Payment with No Documentation

    It IS normal for a person to be required to use their SSDI back pay to reimburse a long term disability insurance provider. I am not aware of any cases where the LTD company has also demanded to be reimbursed the children's portion of the SS back pay. However, if the monthly amount of your LTD payments included an extra amount because you had dependent children, it could be valid for them to demand the children's share as well.

    At this point, I really think that you are going to have to hire an attorney to deal with the LTD company. Are you supposed to be continuing to receive a reduced LTD benefit along with your SSDI, or does your SSDI completely replace your LTD benefit?

  3. #3

    Default Re: Repaying Ltd After SSDI Lump Sum Payment with No Documentation

    The monthly payments I was getting from the LTD were calculated as a percentage of my salary (70%). There was no separation of X dollars to me and Y dollars to my child. Matter of fact, there was no mention of my child whatsoever.

    But the question still remains, what about the "no documentation" run-around? Is there some specific term other than policy? Maybe I'm just not using the right terminology. And also, what rights do they (the LTD) have with regards to my information with Social Security?

    I know I'll likely have to hire an attorney, but I'd like to get SOME info before I find one; if I know a little bit, then it helps weed-out the attorneys that I probably shouldn't choose.

  4. #4
    Join Date
    Jun 2014
    Posts
    3,005

    Default Re: Repaying Ltd After SSDI Lump Sum Payment with No Documentation

    You should have received some type of booklet explaining the specifics.

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