Managing a long-term disability can be both time-consuming and also very costly. The purpose of disability insurance is to ensure that your basic needs and expenses are covered so that managing your disability is your prime focus instead of worrying about a lack of income.
Insurance companies profit by paying out as little as possible, however, and in some instances, they might claim that they paid out too much in benefits and attempt to recover the supposed overpayment. This often occurs after you use the benefit funds to pay your bills, and this can make managing your disability and finances all the more difficult and stressful.
An experienced Philadelphia disability attorney from The Garner Firm, Ltd. is ready to answer questions and advocate for the best possible outcome in your situation involving an overpayment recovery attempt. Read on to learn more about long-term disability overpayments and how a disability attorney can help.
Policy Language and Terms Will Determine Your Options
Receiving benefits for your long-term disability would seemingly mean that you are entitled to those benefits and are free and clear to use the funds. However, this is not always the case, and insurance companies may send you bills seeking a return payment for benefits you likely already spent. This can be stressful, to say the least.
The Employee Income Retirement Act of 1974 (ERISA) governs long-term disability insurance coverage sponsored by most private sector employers in the United States. This law does permit insurance companies to pay benefits and then later seek overpayment recovery if the policy terms specifically allow for such recovery attempts and not from the general assets of a benefit plan participant. Some insurance companies seek recovery even though the policy language does not expressly permit them to do so.
The purpose of the overpayment recovery is to collect on funds that the insurance company claims that you were not entitled to, after the fact. Generally, claims of overpayment of long-term disability benefits occur if you also began receiving Social Security disability benefits. A disability attorney can independently analyze the recovery effort to determine its legitimacy and negotiate the best possible outcome for you.
The experienced long-term disability attorney is ready to advise you on what options are available if your disability insurance company tries to recover an overpayment. You should never simply believe that your insurer has this right to collect from you – instead, always discuss your situation and policy with a skilled attorney first. You should also never ignore a recovery attempt, as the insurer might take legal action against you.
Connect with a Philadelphia Long-term Disability Lawyer to Discuss Your Overpayment
Being pursued for payments that you have already received and may have already spent can be stressful. By seeking a disability attorney to negotiate on your behalf, you can rest assured that the best possible outcome will be achieved and that you can avoid illegitimate attempts at overpayment recovery. In support of the best outcome in your situation, schedule a consultation with The Garner Firm, Ltd. today.