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Will Personal Injury Compensation Affect Benefits?

Personal Injury Compensation

Personal injury compensation typically involves receiving monetary damages as a result of harm or injury caused by the negligence or intentional actions of another party. This compensation aims to cover various losses incurred due to the injury, including medical expenses, lost wages, pain and suffering, and other related costs. These damages can be awarded through settlements negotiated outside of court or determined by a judge or jury in a court trial.

In the aftermath of an accident or injury, navigating the legal, financial, and bureaucratic landscape can be overwhelming. One common concern that arises is how receiving personal injury compensation might impact the government benefits one may be receiving.

In this article, we’ll take a closer look at this issue and provide insight we hope you find valuable. 

Personal Injury Compensation & Its Impact on Benefits

The impact of personal injury compensation on benefits largely depends on the specific program and the nature of the compensation received. 

Here's a breakdown of how compensation may affect different benefits:

  • Social Security Disability benefits: Personal injury settlements or awards may affect SSDI benefits if they result in an increase in income or assets that exceed the program's limits. However, compensation for pain and suffering is typically not considered income for SSDI purposes.
  • Supplemental Security Income (SSI): SSI benefits are means-tested, meaning eligibility is based on income and resources. Personal injury compensation may count as income or assets, potentially affecting SSI eligibility or benefit amount.
  • Medicaid and Medicare: Compensation from a personal injury claim may impact eligibility for Medicaid or Medicare if it exceeds income or asset thresholds set by these programs. However, compensation specifically designated for medical expenses may be exempt.
  • Unemployment benefits: Personal injury compensation generally does not affect eligibility for unemployment benefits, as these benefits are typically based on employment status rather than income or assets.

As you can see, the benefits you currently receive or may need to apply for in the future can be affected by your personal injury settlement. For this reason, it’s important to share your concerns with your attorney, who can provide legal guidance on this matter. 

Contact Us for Legal Assistance

Receiving personal injury compensation can be a crucial lifeline for individuals facing medical expenses, lost income, and other hardships resulting from an injury. However, it's essential to understand how this compensation may interact with government benefits programs to avoid unintended consequences. 

At Carlson & Dumeer, LLC, we can advise our clients on any matter related to their personal injury case. If you are concerned about how a potential reward may impact your access to benefits, you can reach out to us for legal counsel. 

For more information, contact us online and request a consultation.

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