The sordid truth

In response to something brought up in a previous comment, here are some annoying details about Social Security disability payments and Long Term Disability works.

SSDI is retroactive to January 2006 (6 months after the disabling event). But all of that goes back to the long-term diability company. Not only do they require that you apply for SS, but they either withold what they estimate you will get or you have to pay them back when you get it.

So everything I get retroactively has to get paid back, but I also have to pay the lawyer. Now the lawyer only gets paid if he wins, and his fee is capped by Social Security, so he gets paid a maximum out of my benefit directly by Social Security. But since I owe the whole amount back to the LTD company, I have to make up that difference out of my own pocket even though I never see a dime of it. So the LTD company gets the benefit of my effort and money because they get reimbursed and going forward they will also reduce their payments to me. I'll be out somewhere between $5k - $6k.

Of course, getting this decision may mean they keep paying me the LTD. They've cut me off twice so far this year, without telling me. Coincidentally it was right before I called to tell them about the hearing and then right before I called to tell them the decision. They never said anything, but missing payments showed up early the next month - about a week late - after they heard the news.

With this decision in my favor, maybe they'll finally believe my doctors.


Now that sounds kind of bitter, and it is. In part becuase of the arbitrary and capricious nature of the LTD insurance company's behavior. But also it's becuase the LTD company gets a benefit I am pretty sure they never explain when they sell the policy. My company paid a premium for a specific level of benefit, but the insurance company isn't paying that benefit. So they get the premium, taking the bet, but they don't pay off in full. I just doubt that they ever mention this when selling a policy.