Question
What is the name of your state? Virginia
My husband has been receiving LTD since February 2003 due to illness. He last worked in July 2002. In October 2002, he applied for Social Security Disablility. He was awarded this in May. His check in May was back pay for Jan.-March and the regular amount for April.
When he was applying for the LTD through his employer, he notified the company that he had also applied for SSD. This was included in the insurance companies application.
He has received a letter from the insurance company stating that he owes over $4000 that must be paid in 10 business days.
At first I asked if this were legal, and I have answered my own question, yes.
Our daughter receives money from the ssd insurance because of her father.
Can the insurance company include the amount our daughter receives when figuring the amount we owe back?
Thank you for your help.
Answer
This will depend on the specific wording in your disability plan related to exactly what other benefits can be used to offset the LTD payments. If it does not specifically extend to "dependents" then I would condider appealing the decision.
Additionally, if SS reduced the retro payment because of attorneys fees they paid to your attorney, these may not be subject to offset based on in Great-West Life & Annuity Insurance Co. v. Knudson.
Answer
Thank you. I will look into his policy.