Michigan lawyer discusses how to maximize disability payments while on workers’ comp.
What happens if you get hurt on-the-job? This is a question that many people never even think about until it occurs. It can be difficult navigating the complex world of disability benefits. Many clients ask us can I apply for disability while on workers’ comp in Michigan? How do I maximize potential cash payments? Here is some general advice that can be used to help you get on the right track.
Our lawyers want you to know about all potential disability benefits. This includes workers’ comp, Social Security Disability, and other insurance policies such as short-term and long term disability. Here is some information about each benefit and how to maximize what is paid.
Workers’ comp pays 80% of an employee’s after-tax average weekly wage. It also covers all medical bills that are reasonable, necessary, and related to the accident. These are potentially lifetime benefits.
Can I apply for disability while on workers’ comp in Michigan?
Individuals who are receiving workers’ comp in Michigan can apply for disability. This includes Social Security Disability and other insurance policies such as short-term or long-term disability. There will be potential offsets and tax consequences depending upon how each disability benefit is paid.
Social Security Disability Insurance (SSDI)
SSDI pays monthly benefits to individuals who cannot work. In Michigan, you can apply for social security disability while on workers’ comp but there will be an offset applied by SSA if combined payments exceed 80% of average current earnings. There are also potential tax consequences. It is possible to avoid the SSDI offset by cashing out the workers’ comp claim for a lump sum payment. Individuals on SSDI can also qualify for Medicare health insurance.
There is a second program called Supplemental Security Income (SSI) and eligibility is based upon financial need. Individuals who are receiving workers’ comp benefits typically do not qualify because their income will be too high.
Short-Term Disability (STD)
Individuals can purchase STD through their employer or individually. This pays money for a very limited time such as 6 months. It is common for these insurance policies to exclude payments for occupational injuries and diseases. However, if workers’ comp has been disputed, applying for STD is a great way to get immediate financial relief. If workers’ comp is later paid, reimbursement to the short-term disability insurance carrier will typically be required.
Long-Term Disability (LTD)
Individuals can also purchase LTD through their employer or individually. In Michigan you can apply for long-term disability while on workers’ comp but there will usually be an offset based upon “other income.” This can sometimes reduce what is paid under long-term disability to a minimum of just $100 per month. It is very important to speak with an experienced workers’ comp lawyer to figure out how to maximize payments to ensure the best possible recovery.
Injured while on-the-job in Michigan? Contact our lawyers now
If you were injured while on the job in Michigan and are wondering if you can apply for disability while on workers’ comp or have any other questions about your claim, call us now, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. Our attorneys are here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 35 years. Our attorneys can help you better understand Michigan work injury laws and what happens after someone has been hurt on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 316-8033 for a free consultation today.
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