If you receive a workers' compensation settlement and are also receiving Social Security disability benefits (SSDI), your SSDI payments may be affected. Workers' compensation is a type of insurance that provides financial assistance to employees who are injured on the job. SSDI is a federal program that provides financial assistance to individuals who are unable to work due to a disability and have paid enough Social Security taxes to qualify for the program.

Here are some things to consider if you receive a workers' compensation settlement and are receiving SSDI:

Offset rule: If you receive both workers' compensation and SSDI, the Social Security Administration (SSA) may reduce your SSDI benefits by an amount called the offset. The offset is the amount by which your workers' compensation exceeds the amount of your SSDI benefits. For example, if you receive $1,000 per month in workers' compensation and $800 per month in SSDI benefits, your SSDI benefits will be reduced by $200 per month (the offset). The offset rule applies to both retirement and disability benefits.

Coordination of benefits: If you are receiving both workers' compensation and SSDI, the SSA and your workers' compensation insurer will coordinate your benefits to ensure that you receive the maximum amount of benefits possible. The SSA and your workers' compensation insurer will determine the amount of your SSDI and workers' compensation separately, and then they will coordinate the benefits to determine the total amount you are entitled to receive.

Medicare: If you are receiving SSDI, you are also eligible for Medicare after a two-year waiting period. Medicare is a federal program that provides health insurance to individuals over the age of 65 and to those who are receiving SSDI. If you receive a workers' compensation settlement, your Medicare coverage may be affected. Under certain circumstances, the SSA may require you to repay a portion of your Medicare benefits if you receive a workers' compensation settlement.

Continuing disability review: If you receive SSDI, the SSA will periodically review your case to make sure you are still eligible for the program. This is called a continuing disability review (CDR). If you receive a workers' compensation settlement, the SSA may conduct a CDR to determine if your medical condition has improved or if you are able to work. If the SSA determines that your medical condition has improved and you are able to work, your SSDI benefits may be stopped.

Reporting a change in income: If you receive a workers' compensation settlement, you must report the settlement to the SSA as soon as possible. You can report a change in income online at the SSA website, by calling the SSA at 1-800-772-1213, or by visiting your local SSA office. If you do not report your change in income, your SSDI benefits may be delayed or stopped.

In summary, if you receive a workers' compensation settlement and are receiving SSDI, your SSDI payments may be affected by the offset rule, the coordination of benefits, your Medicare coverage, and the possibility of a continuing disability review. It is important to report your change in income to the SSA as soon as possible to avoid any delays or interruptions in your SSDI benefits. If you have any questions about how a workers' compensation settlement may affect your SSDI payments, you should contact the SSA for more information.