Understanding Long-term Disability Repayment

It can happen that the Social Security Administration (SSA) will overpay a beneficiary, and may ask for long-term disability repayment. According to the website of the Hankey Law Office, P.C., a law firm in Indianapolis, Indiana is one of the states with the lowest approval rates compared to the national average. The most common reasons for an overpayment are:

  • Failure to inform the SSA of changes in your financial situation
  • Marriage
  • Improvements in physical disability
  • Return to work or increase in income
  • Errors made by SSA in computation or double payment of benefits

In Indiana, the Social Security Disability Insurance (SSDI) benefits of a claimant are based on the determination of the state’s Disability Determination Service Bureau, but they can make mistakes in approval as well as denial. When the SSA eventually learns of the overpayment, they will send a letter to explain why an overpayment was made and request a long-term disability repayment. Even when the overpayment is not your fault, you are still obliged to pay it back unless you can get a partial or full waiver. The letter should also specify your options for payment and the right to appeal both the overpayment and long-term disability and request a waiver if:

  • It will represent a hardship for you to repay the amount overpaid
  • You do not believe it was an overpayment

However, it is important to communicate your concerns with the SSA as soon as possible. Ignoring the letter may result in wage garnishment or asset seizure to cover the amount owed. The SSA will always work with a beneficiary to make long-term disability repayment as painless as possible, but still it may be a stressful and difficult process.

If you are disputing the overpayment claim, or requesting a waiver, you may have to go through a complex process that is not always easy for a layman to make sense of. It would be best to consult with a long-term disability lawyer in Indiana to assist in your case.

1 Comment

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