Will Your Settlement Affect Your Social Security Benefits?
Will Your Settlement Affect Your Social Security Benefits?

If you are receiving Social Security Disability Insurance (SSDI) or Social Security Income (SSI) benefits and have received a personal injury settlement, you might be wondering if your settlement will affect your benefits.

Generally speaking, your personal injury settlement should not affect your SSDI benefits. There could be exceptions, but since these benefits are based on work history, not need, they should not be affected.

Similarly, Medicare benefits should not be affected by a personal injury settlement. Medicare is also based on your work history, not your income or assets. However, your premiums for Medicare could be affected, as you are required to report your settlement as earnings.

Needs-Based Benefits Could Be Affected

Benefits that likely will be impacted by a personal injury settlement are Social Security Income (SSI) and Medicaid. That’s because these are needs-based programs, and you will need to report your settlement amount to the social security office.

This can be a problem for many people. SSI benefits are important for individuals receiving low cost healthcare and pharmaceuticals. Oftentimes a settlement does not outweigh the loss of such benefits. If you will be receiving a settlement and you are a recipient of SSI and/or Medicaid, you should consult with your attorney about how to protect these benefits. You might be able to set up a Special Needs Trust and retain your benefits.

“If you are concerned about how your settlement will affect your benefits, be sure to speak with your personal injury attorney,” said Attorney Walter Clark, founder of Walter Clark Legal Group.

Our firm has been handling personal injury cases throughout the California Low Desert and High Desert communities for over 30 years. With a 95% success rate, the personal injury attorneys at Walter Clark Legal Group will fight to hold those responsible for your loss accountable and win compensation to cover medical bills, lost wages, and pain and suffering. If you have been injured in an accident and want to discuss your legal options, contact us today for a free consultation with an experienced personal injury lawyer. We have offices in Indio, Rancho Mirage, Victorville, and Yucca Valley and represent clients through the entire California Low Desert and High Desert communities.

DISCLAIMER: The Walter Clark Legal Group blog is intended for general information purposes only and is not intended as legal or medical advice. References to laws are based on general legal practices and vary by location. Information reported comes from secondary news sources. We do handle these types of cases, but whether or not the individuals and/or loved ones involved in these accidents choose to be represented by a law firm is a personal choice we respect. Should you find any of the information incorrect, we welcome you to contact us with corrections.

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