Can I Get Disability After Workers’ Compensation Settlement In Maryland?

Yes, you can still qualify for disability in Maryland after workers’ comp settlement, but the process and outcome depend on several factors. This article delves into the intricacies of how workers' compensation settlements interact with disability benefits in Maryland, helping you navigate this complex landscape and ensuring you understand how to maximize your benefits.

Understanding Workers' Compensation Settlements in Maryland

Workers' compensation in Maryland is designed to cover medical expenses and lost wages for employees who are injured at work. When you reach a settlement, you essentially agree to close your workers' comp case in exchange for a lump-sum payment or structured payments. These settlements can vary widely depending on the severity of your injury, your ability to work in the future, and other factors.

Maryland workers' compensation benefits fall into several categories, including Temporary Total Disability (TTD), Temporary Partial Disability (TPD), Permanent Partial Disability (PPD), and Permanent Total Disability (PTD). Each type of benefit serves different purposes and is calculated differently. For instance, PPD benefits are based on the severity and permanence of your injury and your impairment rating, while PTD benefits are for those who are completely unable to work.

Before you agree to a settlement, it's crucial to understand what you're agreeing to. A settlement typically means giving up the right to any future claims related to your injury. This can be a significant decision, especially if your condition worsens or if you might qualify for additional benefits later.

Eligibility for Disability Benefits After a Workers' Comp Settlement

After you settle your workers' compensation claim, you may still be eligible for federal disability benefits, such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). However, your eligibility depends on several factors, including the terms of your settlement and the type of disability benefits you seek.

SSDI is available to individuals who have a qualifying disability and sufficient work history. If you receive a workers' comp settlement, it can affect your SSDI benefits because the Social Security Administration (SSA) may reduce your monthly SSDI payments to ensure your combined income doesn't exceed 80% of your pre-disability earnings. This is known as the workers' comp offset.

SSI, on the other hand, is a needs-based program. If your workers' comp settlement pushes your income or assets above certain thresholds, you may no longer qualify for SSI. This makes it essential to structure your settlement carefully, perhaps by spreading payments over time to avoid disqualification.

The Impact of Workers' Comp Settlements on Disability Benefits

One of the most significant ways a workers' comp settlement affects your disability benefits is through the offset applied by the SSA. Under federal law, your total income from workers' comp and SSDI cannot exceed 80% of your pre-disability earnings. If it does, your SSDI benefits will be reduced accordingly.

For example, if your average earnings before your injury were $4,000 per month, your total monthly benefits from workers' comp and SSDI cannot exceed $3,200. If your workers' comp settlement is paid out in a lump sum, the SSA may prorate this amount to reflect a monthly equivalent, which can lead to a temporary reduction in your SSDI benefits.

Lump-sum settlements can be particularly complex because the SSA often needs to determine the settlement's value over your expected lifetime. This process, called "amortization," involves spreading the lump sum over a period equivalent to your life expectancy, which can further reduce your SSDI benefits.

Navigating the Application Process for Disability Benefits After a Settlement

Applying for SSDI or SSI after settling your workers' comp claim involves several key steps. First, you'll need to gather comprehensive documentation, including medical records that demonstrate the extent of your disability. The good news is that the medical documentation from your workers' comp case will be highly relevant and useful here.

Next, you'll need to complete the SSDI or SSI application, which can be done online through the SSA's website. The application will require detailed information about your work history, medical condition, and financial situation. It's important to be thorough and accurate in your application to avoid delays or denials.

If your application is denied, don't be discouraged. Many SSDI applications are denied initially, but you can appeal the decision. The appeals process can be lengthy, often taking over a year, but having a detailed and well-supported case can improve your chances of success.

State-Specific Considerations in Maryland

Maryland has its own set of rules and regulations that can impact your workers' comp and disability claims. For instance, the state allows workers to choose their own doctor after a work-related injury, which is crucial for ensuring that your injury is documented accurately and comprehensively.

Maryland also has specific deadlines for reporting injuries and filing claims. You must notify your employer of your injury within 10 days to qualify for workers' comp, and you must file a formal claim with the Maryland Workers' Compensation Commission within 60 days. Missing these deadlines can jeopardize your eligibility for benefits.

When it comes to settlements, Maryland law requires that a physician must confirm that no further treatment is necessary before a case can be fully settled. This "no future treatment" indication is essential for finalizing your settlement and ensures that your medical condition is stable enough to warrant a lump-sum payment.

Conclusion

Navigating the intersection of workers' compensation and disability benefits in Maryland can be complex, but it's crucial to understand how a settlement might impact your long-term financial stability. If you’re considering a settlement or need to apply for disability benefits afterward, consulting with legal experts such as Shultz Legal, who specializes in workers' comp and disability law is essential. They can help you structure your settlement to maximize your benefits and guide you through the application process to ensure you receive the support you need.