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Disability Overpayment

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Melodee Irene

What is the name of your state? GA

I have been recently notified of an overpayment by my disability carrier in the amount of $10,000. I am no longer eligible for disability benefits but am receiving social security.

While I am not disputing that I may owe this, the carrier has requested me to send a check for the full amount. At the close of their letter, they suggested I could contact them with a reasonable payment schedule if I needed to.

I am still disabled with only social security as my income. Reasonable to me would be about $100 per month. That would take me 10 years-but I am a single mom with 2 kids and no child support.

Any feedback, suggestions or advice would be appreciate.


I'm a Northern Girl
Call them and find out whether or not that would be acceptable to them. Most companies would much rather receive a full payback slowly over time than receive nothing at all.


Melodee Irene,

We are not attorneys and don't give legal advice. However, based on our insurance experience our opinion would assume that this "payback" is because of a lump-sum retroactive payment from SS Disability. Don't be to quick about accepting the insurance company's calculation. If not paid back immediately, some companies are offsetting the full LTD benefit until it equals the full amount due, leaving you to live on the SSD benefit only.

Also, depending on exactly how the policy is worded about the offset, your pre-disability earnings may be able to include commissions, overtime, bonuses and other special compensation.

Finally, are they saying that the reduction for your SSD would also include the extra amount being paid for the kids? Depending on the policy wording, I'm not sure that this would be fair.

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