How does personal injury settlement compensation affect Social Security Disability?



Social Security Disability Insurance is an entitlement program offered by the Federal Government. Social Security Disability Insurance (SSD), was implemented to provide disability insurance for injured working people and their families. When a taxpayer becomes unable to work, then SSD pays out.

SSD eligibility is not based on income or personal resources. Instead, SSD kicks in if a worker is unable to engage in substantial gainful activity by reason of any medically determinable physical or mental impairment.

Because SSD is an entitlement program, rather than a needs-based program, SSD will not be affected by a personal injury settlement or verdict. In other words, if someone receiving SSD benefits acquires compensation from an injury case, that that person will not have to worry about losing SSD benefits.

Further, while some government programs, like Medicare, have a statutory right to recover against settlement proceeds for costs paid on behalf of the injured person, this is not the case for SSD. SSD benefits paid post-injury do not generate a lien, but generally are offset in the case of some worker’s compensation payments. 

If you or a loved one have been injured, and you are wondering how this will affect our Social Security Disability, then please, feel free to call and speak to one of our experienced Atlanta car accident lawyers today. Our consultations are always free.