[COLBEYMOORE]

Okay just got a letter today from my LTD provider regarding overpayment of my LTD benefits since I was approved for SSDI. Forgive me my logical sense has left me (medication)and this question may sound very easy and straight forward.

fact
1. Told if I used their attorney I would not have to pay for attorney fees so I did their attorney. (Allsup)

Breakdown of overpayment

monthly SSDI amount awarded back to 2/09 - $1444
LTD amount paid to me monthly began 2/09 -$2916
LTD amount that should have been paid monthly -$1472

Amount of overpayment received from SSA - $23,104. Letter indicates they are due this exact amount then gives breakdown as follows:
credit for attorney fee of $5350 leaving
net due to LTD provider $17,000.

Do I just send LTD provider their $17,000 and then they pay Allsup? Which is confusing because then that goes against the "I will not have to pay the attorney fees" however if I just give them $17k I will be ahead $6k and they will only actual receive around $12k roughly??

Allsup is saying I am suppose to send them the money first then pay my LTD provider.

Also I have pending backpay for my children. Can my LTD provider then send another letter asking for their backpay as well?

Cant wait to call my LTD provider on Monday but until then just curious is anyone has gone through this??

Thanks

[lefthanded]

Originally Posted by COLBEYMOORE

Okay just got a letter today from my LTD provider regarding overpayment of my LTD benefits since I was approved for SSDI. Forgive me my logical sense has left me (medication)and this question may sound very easy and straight forward.

fact
1. Told if I used their attorney I would not have to pay for attorney fees so I did their attorney. (Allsup)

Breakdown of overpayment

monthly SSDI amount awarded back to 2/09 - $1444
LTD amount paid to me monthly began 2/09 -$2916
LTD amount that should have been paid monthly -$1472

Amount of overpayment received from SSA - $23,104. Letter indicates they are due this exact amount then gives breakdown as follows:
credit for attorney fee of $5350 leaving
net due to LTD provider $17,000.

Do I just send LTD provider their $17,000 and then they pay Allsup? Which is confusing because then that goes against the "I will not have to pay the attorney fees" however if I just give them $17k I will be ahead $6k and they will only actual receive around $12k roughly??

Allsup is saying I am suppose to send them the money first then pay my LTD provider.

Also I have pending backpay for my children. Can my LTD provider then send another letter asking for their backpay as well?

Cant wait to call my LTD provider on Monday but until then just curious is anyone has gone through this??

Thanks

Who is Allsup? What is their relationship to your LTD carrier? i responded to your PM but never did quite follow this . . .

[COLBEYMOORE]

Allsup is SSA advocate. They were recommended to me by my LTD provider. I was told if I used them I would not have to pay their fee.

[finz]

Maybe they were referring to the fact the normally, you do not actually pay the lawyer fee directly, it comes out of your ssdi backpay or maybe they meant the LTD carrier pays it because it is worth it to them to get you off LTD and onto SSDI

Sorry, I don't have any experience with paying back LTD and how that all works

[Janke]

Originally Posted by COLBEYMOORE

Okay just got a letter today from my LTD provider regarding overpayment of my LTD benefits since I was approved for SSDI. Forgive me my logical sense has left me (medication)and this question may sound very easy and straight forward.

fact
1. Told if I used their attorney I would not have to pay for attorney fees so I did their attorney. (Allsup)

Breakdown of overpayment

monthly SSDI amount awarded back to 2/09 - $1444
LTD amount paid to me monthly began 2/09 -$2916
LTD amount that should have been paid monthly -$1472

Amount of overpayment received from SSA - $23,104. Letter indicates they are due this exact amount then gives breakdown as follows:
credit for attorney fee of $5350 leaving
net due to LTD provider $17,000.

Do I just send LTD provider their $17,000 and then they pay Allsup? Which is confusing because then that goes against the "I will not have to pay the attorney fees" however if I just give them $17k I will be ahead $6k and they will only actual receive around $12k roughly??

Allsup is saying I am suppose to send them the money first then pay my LTD provider.

Also I have pending backpay for my children. Can my LTD provider then send another letter asking for their backpay as well?

Cant wait to call my LTD provider on Monday but until then just curious is anyone has gone through this??

Thanks

You did mean breakdown of UNDERpayment, not OVERpayment, right?

You gotta read your LTD contract.

[Babyboomer15]

I was reimbursed attorney fees thru my LTD carrier. It was subtracted from the overpayment.

[Allsup]

Receiving SSDI, knowing who pays for what, and private long-term disability insurance (LTD) can get a little confusing when combined. It is common for LTD plans to require that you apply for Social Security Disability Insurance (SSDI) if it’s likely that you are permanently disabled. If you do qualify for SSDI, the insurance company reduces the amount of your monthly LTD benefit by the amount of your monthly SSDI check. They call this an “offset” and having this provision in your group LTD plan helps keep the cost of your LTD benefit down for you and your employer.

The good news is that your insurance carrier keeps paying you the full LTD amount every month while you can’t work and are waiting to be approved for SSDI (which can take years these days). And often the LTD insurer will pay the fee for a SSDI representative to help you through the SSDI process, or reimburse you for this expense. (If you don’t get reimbursed, the fee could be tax deductible on your federal tax return.) But the process can get complicated. If you waited a long time to get SSDI, you get a retroactive SSDI payment from the government, paying you back to when you first qualified for the SSDI benefit. That means you were getting a full (without an offset) LTD payment, plus SSDI for that time period. LTD plans usually require you to return this overpayment, and usually, the easiest way for you to do this is to reimburse them using your retroactive SSDI benefit. Some SSDI representatives assist you with this by coordinating the reimbursement for you.

It may not seem that way at first, but you didn’t lose any money in this process. Going forward, you will receive all of the money that you are supposed to under your private and public disability plans, it’s just now coming from two sources (LTD and SSDI) instead of one (LTD). LTD plans are designed to work with SSDI benefits. Remember that both you and your employer contributed FICA taxes toward the SSDI program. Also, it’s important to note that if you do not reimburse your LTD plan, your LTD benefits may be negatively affected. All of this is contingent upon your individual plan of course.

Regards,
Mike Stein

[Cblue]

What is an LTD provider?

[Jomar]

LTD is Long Term Disability

I think you can get it through most insurance companies - many employers have it or an option to get it, in their benefits package.

[Cblue]

I see..thank you JoMar!!!