How does disability work?
 

I have a question for yall.. We are in the process of buying a new house and though I am working now and doing well on IVIG, I do worry about what if I get worse and can't keep up with my job.. My job has disability which they say is 60% of what you made.. but I am curious,

do most people get medicare for their insurance in addition to their private disability,

or does the face that you get private disability disqualify you from medicare help?

I just want to be smart with our home purchase, and curious for any advice, or previous experiences!

Thank yall in advance!

I am very curious myself. I am 53 and a single parent. I have 5 years at which I can take early retirement with medical benefits. The way I feel know, I am not sure I can last 5 more years working. I know I have a disability package at 60%. But I do not understand how social security disability or medicare apply. Can you get that in addition or is it excluded or prorated. I have a daughter heading to college in a few years and financially, I am very worried.

It would help put my mind at ease and be able to come up with a Plan B if I understood how these things worked.

Right now my plan is to try to keep working and keep the house (I have to stay in the school system for 2 more years). After 2 years, I hope to sell the house while my daughter goes to college and go into one of those small one-level retirement complexes with a pool.

It would really help me plan if i knew how social security, disability, medicare fit in to a private disability plan. Any light or guidance would be very much appreciated.
thanks, kathie

I think it will depend on where you are.

In the state of Georgia, after 10- 13 years of service as a state employee, depending on which branch you are employed in, you can go on disability retirement. This will allow you to keep your insurance at the same rate as the people that are still working. The problem is that your retirement will only give you a very small amount of money since you didn't work long. Additional disability insurance should add to that amount.

I would go to my human resources people and talk to them about what the deal is. You don't have to tell them that you have an illness. Just ask the questions in a generic manner.

Thanks, it is good to know I will probably keep my health insurance. I work for a university so the benefits are pretty good. But I know if I talk to HR, it will get back to my boss and impact my treatment while I am still working. Sad but true. But I guess I can call the state disability and they can tell me.

thanks
kathie

My experience with social security disability was that I first hired a good attorney who had experience with the process since I've been told that most of the time you are denied the first time you apply. I did not have employment insurance or disability benefits.

Getting disability depends on proof that you can no longer work, and you must have earned 6 to 20 credits in the 3 to 10 years before you become disabled (one credit equals $11.20 of wages) because what you are actually applying for are early social security benefits and you had to have paid FICA taxes. To prove that you can no longer work you have to have a doctor's written statement that you are disabled. My attorney had a form for my neuro to fill out and he sent that to the SS administration with a letter stating that there was no question that I was eligible. The SS administration will determine whether you have to prove again that you are elible in three or seven years depending on you disability. Luckily I don't have to prove again for seven years.

After I received SS disability, I was basicly forced to be on medicare. I wasn't happy about that but my private insurance premiums were going through the roof but medicare truly limits the doctors you can see.

Hope this helps.

Southern Bell
:grouphug:

Southern Bell, thanks, this was very helpful.

kathie

i live in nh, was diagnosed with myasthenia gravis in the beginning of march 2012. I tried working for a few months after I started on Mestinon. I found it vary difficult to work, I have speech problems that are severe and visual that just comes on without warning. I applied for ssi but was denied. I have a lawyer now, just waiting for the appeal takes an eternity. NH said that I am disabled, but waiting for ssi is a long process. Its sad really, have no money coming in and bills are debt collectors are calling. I cannot work, tried to but was unable. Before you sign up make sure you get a lawyer or have proof that you are disabled. And make sure your doctors will stand up for you. Ive been almost a year now and still no help.
just a warning.

:eek:

I forgot to mention that a lawyer can't charge you unless you win the case and they can only charge you 20% (if I remember correctly) of the total you initial receive. In my case, I first applied in December and was approved in March. My first payment was for June (when I could not work anymore) through February. I was surprised by that. You can apply on line to start the process and SSD will call you to confirm all the information and will send you any information that will be needed. Also they establish dates that you have to go by to provide information, etc. It is very important to get the information to them on time or your case will be denied.

Huntress is right that once you have been denied the process really gets drawn out. And it is very important to let your doctor know that you are planning to apply for disability because they will send him/her information to complete and return and there will be a time limit on that also. That's why I'm glad that I got a lawyer to begin with because I got the doctor to complete the form provided by my lawyer and it was provided to the government at the beginning.

Also I forgot to say that once you've been denied, you will have to physically go before a SSD board to prove your case and they can still deny you again.

Good luck and sorry for so much information but it is important to know as much as possible.

Southern Bell
:grouphug:

Thank you all so much. You have given me a lot of information so I can make a plan to fall back on if I need to. I think I will definitely get a lawyer if I need to apply.

thanks
kathie

Hi - just wanted to add my 2 cents! I was in the same position as you - worked for a company that had disability insurance that paid 60% of my gross at the time I was disabled. The ins company required I apply for SSDI and hired ALTUS to work with the SS to make sure I got the SSDI. Working to get you your SSDI is all ALTUS does and the insurance company paid their fees. I was turned down twice by SSDI but when it got to the judges chambers, they read my file and approved my case. I didn't even have an appointment for court, they just approved it based on my file.

Once I started receiving my SSDI, I had to reimburse the insurance company the past amount SS sent me. I now receive my regular SSDI and enough insurance money to bring me up to 60% of my gross at the time I was disabled. This will continue until I reach my regular retirement age (66 for me).

As far as the insurance goes, COBRA will cover you for 18 months as long as you pay the premium. Once you have been approved for SSDI, you receive an additional 11 months of COBRA eligibility and that will take you to the point where you become eligible for Medicare, which for me is April, 2013. That is 29 months on COBRA until you are eligible for Medicare. One final note, if you purchase a Medigap policy to supplement Medicare Part B, your premium is about 3 times what it will be when you reach 65. Just one of those wierd quirks in the law.

Hope this gives you some additional information. Let me know if I can help in any way.

wow, THank yall all so much - not super straight forward it sounds like!! It's sad when people who truly need help and assistance can't get it .. It's all so stressful!! hopefully i won't need it, but when making such big decisions like buying a house, I want to be as informed as possible with the "worst case" scenerio..

I worry about not being able to provide for my family ALL of the time, much less adding the cost of medical bills on top of that!

So it sounds like even if you get Social Security disability, the private insurance reduces their amount so you only end up with 60% of your gross anyway. And I am assuming it is all taxable too.

Does anyone know if my child still a minor would also collect Social security and can the private insurance reduce their supplement based on her collecting too?

It looks like I need to get myself in a position to live on 60% of my pay soon. I have a lot of calculating to do. Is there any other benefits/discount disability may qualify you for such as real estate tax deductions, utilities, etc?

Thanks so much eveyone for sharing your wealth of information and experience. This forum is a lifesaver. Where else could you collect so much information so fast.:grouphug:

kathie

Once you have been on disability for 6 months (insurance or SSDI), they stop deducting FICA/MED. SSDI is not subject to withholding unless you have a certain amount of earnings. Your insurance company will send you a W-2 (earnings), but SSDI will send you a 1099 and is not considered earnings. The following is copied from the SS website:

"About one-third of people who get Social Security have to pay income taxes on their benefits.

If you file a federal tax return as an “individual,” and your combined income* is between $25,000 and $34,000, you may have to pay taxes on 50 *percent of your Social Security benefits. If your combined income* is more than $34,000, up to 85 percent of your Social Security benefits is subject to income tax.

If you file a joint return, you may have to pay taxes on 50 percent of your benefits if you and your spouse have a combined income* that is between $32,000 and $44,000. If your combined income* is more than $44,000, up to 85 percent of your Social Security benefits is subject to income tax.

If you are married and file a separate return, you probably will pay taxes on your benefits.

At the end of each year, we will mail you a Social Security Benefit Statement (Form SSA-1099) showing the amount of benefits you received. You can use this statement when you complete your federal income tax return to find out if you have to pay taxes on your benefits.

Although you are not required to have federal taxes withheld, you may find it easier than paying quarterly estimated tax payments.

For more information, call the Internal Revenue Service’s toll-free telephone number, 1-800-829-3676, to ask for Publication 554, Tax Guide for Seniors, and Publication 915, Social Security And Equivalent Railroad Retirement Benefits.

*On the 1040 tax return, your “combined income” is the sum of your adjusted gross income plus nontaxable interest plus one-half of your Social Security benefits.

Pensions from work not covered by Social Security

If you get a pension from work where you paid Social Security taxes, that pension will not affect your Social Security benefits. However, if you get a pension from work that was not covered by Social Security for example, the federal civil service, some state or local government employment or work in a foreign country—your Social Security benefit may be reduced.

For more information, ask for Government Pension Offset (Publication No. 05-10007), for government workers who may be eligible for Social Security benefits on the earnings record of a spouse; and Windfall Elimination Provision (Publication No. 05-10045), for people who worked in another country or government workers who also are eligible for their own Social Security benefits. "

Hope this helps.

Juanita

Wow.. thank yall!!!! that was great information, but one question - is there any money left after all the stinkin taxes!?!?! Ugh....

I don't know if there is any money left after taxes, but I do think that the system is very inefficient. Why take money that comes from taxes; give it out to people, and then tax it.? Shouldn't they just decide how much you need and then make it tax free? It would save tons of money on administrative costs and that money could be used to help the people that need it.

Yes there is money left after taxes. I didn't have to pay any taxes in 2012, fica/med or withholding.

jUANITA

Does anyone know if your dependents/children can collect social security benefits too?

thanks
kathie

Yes that is correct about the 60%. For example, if SSDI amount is 1800.00 and your disability insurance is paying you 2200.00 a month, then dis ins will pay you 400.00 a month vs. the 2200.00. Their portion makes you whole on the original 60% amount.

I also went the LongTerm Disability/SSDI route. The LTD policy paid 60% until SSDI was approved. Now LTD deducts what SSDI pays. I still get 60% between both of them. Neither of the payments are taxable. I was a high wage earner and I was taxed at the high tax rate while I was working, so getting 60% of my earnings, straight out, without taxes, is almost as much as I was earning with taxes.

My LTD company used AllSup to pursue SSDI. They did an excellent job. I am now on Medicare, which costs half of what I was paying for Cobra.

I also downsized my life. We sold our home and we are now renting. I don't want a mortgage over my head. You may want to reconsider buying a home. In my opinion, it really isn't necessary.