Learning that your Social Security disability benefit payment was reduced this month can be a shock when you depend on it to pay your living expenses. A reduction in your disability benefits usually has a reason behind it.
Here are some of the reasons that you may have a Social Security check reduced, and what you can do about it. If your disability payment decreased this month, you may have a remedy through the Social Security appeal process by challenging the decision. First, though, let’s take a look at some of the common reasons that Social Security benefits may be reduced.
Reasons Why Disability Payments May Be Reduced
The Social Security Administration oversees two disability benefits programs: Social Security Disability Insurance and Supplemental Security Income. The following are some of the common reasons you may see an SSDI benefit reduction:
- Overpayment of Benefits: If you received benefits that you were not entitled to get, the Social Security Administration has the right to recover the money by reducing your monthly benefits until the overpayment has been repaid.
- Tax Withholdings: SSDI benefits are generally not taxable, but a person with other sources of taxable income may elect to have money withheld from their benefit payments. If you requested withholdings and forgot, you may be surprised to notice a reduced monthly SSDI benefit.
- Public Disability Benefits: Some people collect workers’ compensation, state disability, and other public benefit payments while receiving SSDI benefits. The total of your SSDI and the public benefit payments cannot exceed 80% of your earnings before the onset of the disability that now prevents you from working.
- Medicare Premiums: As a recipient of SSDI benefits, you also receive Medicare Parts A and B coverage after a 24-month waiting period. Part A covers the cost of inpatient care at a hospital, skilled nursing facility, and hospice care. It also may cover some forms of home health care services. Part B pays costs related to outpatient care, such as visits to your doctors and other forms of outpatient care.
Monthly premiums for Medicare Part B are deducted from your SSDI benefits. You do not pay the cost for Part A coverage. If you have Medicare Part B, you may see an SSDI benefit reduction should there be an increase in the monthly premium.
Some of the reasons why you could see an SSI payment change include:
- A change in your living arrangements, such as living with friends or family, where you live rent-free or pay reduced rent.
- Residing in a facility, such as a nursing home or hospital, with the cost paid by Medicaid.
- You work and earn income from it.
- You receive benefits from other sources, such as SSDI.
- Social Security recoups an overpayment that you previously received.
Only some of the income that you earn from working counts toward reducing your monthly SSI benefits. You may exclude the first $65 of earnings and one-half of the remaining earnings. The amount of earned income that remains reduces the SSI benefits for the month.
Appeal A Benefits Reduction
The Social Security Administration will send a written notice informing beneficiaries of the reasons for lower disability check amounts. If you disagree with the decision, you have 60 days to appeal it through an appeal process. The process consists of four levels or steps:
- Reconsideration: The gets assigned to someone who was not involved in the decision to reduce your benefits. That person reviews the evidence and decides whether the decision to reduce the benefits was correct.
- Disability Hearing: You may request a hearing with an administrative law judge if you disagree with the results of the reconsideration.
- Appeals Council Review: You may request a review of the decision made by an administrative law judge by requesting a review by the Appeals Council.
- Federal Court Lawsuit: A lawsuit in a federal district court may be filed when the first three levels of the appeal process have not resulted in a favorable decision for you.
You need not go through all levels of the appeal. The process only continues until you agree with the decision or go through all appeal levels.
Contact A Sackett Law Disability Attorney
A reduction in disability benefits can be a shock and create financial hardship. If you do not understand the reason or disagree with it, a disability lawyer at Sackett and Associates can help.
Our team of highly-qualified disability professionals reviews benefit reductions to determine the appropriate response. Don’t assume that the decision made by the Social Security Administration was correct. You may have a right to fight it by challenging the decision through the appeal process. Contact Sackett Law today for a free consultation to learn more.
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