What you need to know about other disability benefits and coordination with workers’ compensation in Michigan.
Coordination week continues with a blog post about how other disability benefits can reduce workers’ compensation or create an overpayment situation.
Here is what you need to know if currently receiving short-term disability (STD), long-term disability (LTD), extended disability benefits (EDB), or sickness and accident (S&A).
Disability plans are typically provided through an employer sponsored plan but are not a substitute for workers’ compensation. These plans usually do not cover workplace injuries and will only be paid if workers’ compensation is disputed.
Employers can take a credit for benefits paid under another disability plan. This can be a dollar for dollar offset. However, watch out for plans that are not funded by your employer as these should not be offset.
Occasionally it is the disability plan who insists on lowering payments when workers’ compensation benefits are recovered. This can be very complicated when a workers’ compensation case is settled with a lump sum cash payment. It is possible that an overpayment will be created for periods of time that double benefits were paid.
Not all disability plans are created equal and coordination is complicated. It is best to have your specific situation reviewed by an experienced workers’ compensation attorney. Maximizing all sources of recovery should be the goal.
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 (855) 221-2667 for a free consultation today.
Photo courtesy of Creative Commons, by 401(K) 2013.