Does Personal Injury Compensation Affect Benefits in Philadelphia?

  • August 24, 2021
  • Blog

The main idea behind the personal injury legal system is to compensate injured victims for losses that they have incurred due to another's negligence. Unfortunately, sometimes compensation affects benefits like Medicare, Medicaid, SSI, and SSDI. If you receive any of these benefit, you may be asking, Does personal injury compensation affect benefits in Philadelphia?

A graphic set against a background of 100 dollar bills, with a gold dollar sign in the middle and two arrows, one red pointing down, and one green pointing up, posing the question, does personal injury compensation affect benefits in Philadelphia?

Injured victims are legally entitled to recover compensation for their:

  • Medical expenses
  • Time they lost from work resulting in lost income
  • Pain and suffering
  • Lost enjoyment for activities they once enjoyed

Spouses are even entitled to seek compensation for loss of consortium or companionship to compensate them for injuries to their marital relations due to an injured spouse’s injuries. But it’s also important to remember that no one can unfairly or unreasonably benefit from personal injury awards or settlements.

The majority of federal financial assistance programs that provide qualified individuals with monthly income impose stringent eligibility requirements and financial limits. If you are receiving federal financial assistance from such programs, got hurt in an accident, and have filed a personal injury case, you need to inform your Philadelphia personal injury lawyer before you reach and disburse any settlement compensation and offer. If you're wondering does personal injury compensation affect benefits in Philadelphia, know that failing to plan accordingly might negatively impact your federal benefits or even result in losing those benefits for some time.

Your Medicaid Benefits Might Be Affected

For those who obtain health coverage through Medicaid’s need-based program, and they obtain a personal injury settlement or award through a court verdict, Medicaid is entitled to place a lien on their compensation. A medical lien basically means that they will have to reimburse Medicaid using some of their personal injury compensation. So if your asking does personal injury compensation affect benefits in regards to Medicaid, the answer could be yes.

There’s likewise the Medicaid “set aside” in which some of your award or settlement should be set aside for covering future medical costs associated with the injuries you sustained. If a lien has been placed on your potential personal injury compensation, you will be informed by the agency that administers the program.

In some cases, medical liens could be very significant that they become a major complication during settlement negotiations, such that they could potentially prevent claims from settling. This is why your personal injury should know about any liens or government assistance you are receiving. Additionally, some cases might also involve third-party liens, such as those stemming from other insurance companies or workers’ compensation insurance.

Your SSI Benefits May Also Be Affected

Also, recipients of food stamps and/or Supplemental Security Income (SSI) may find that their benefits may be impacted by their personal injury award or settlement. Food stamps and SSI programs are intended to provide resources for individuals with low income. As with Medicaid, these programs have strict income guidelines to ensure that all recipients really come from low-income families. But a sizeable personal injury award or settlement may place you in a financial position in which you may no longer qualify for benefits for these financial assistance programs.

Your personal injury claim compensation could likewise impact your eligibility for certain housing programs. This fact further highlights the need to work with an experienced Philadelphia personal injury lawyer. Insurance providers and their highly trained insurance claims adjusters know that they can settle claims faster and for lower amounts if an injured victim does not have legal representation.

Through early and fast settlements with unrepresented claimants, insurance providers have the opportunity to close the claims and avoid lawsuits before the real value of their injuries could be evaluated. Aside from the risk of settling your claim for less than you truly deserve, you likewise risk handling your case in a manner that could negatively impact your federal benefits. If you're asking does personal injury compensation affect benefits in regards to SSi, the answer may be yes.

Your Social Security Disability Income and Medicare Will Not Be Affected

Federal benefits based on your previous earnings won’t be affected by personal injury compensation. Unlike the benefits previously mentioned, which have stringent income rules, benefits from SSDI and Medicare are calculated based on an individual’s earnings and work history. Recipients of SSDI and Medicare buy into these federal assistance programs through their employment history, which means that the benefits they get from these programs are calculated from the money they earned when they were employed.

As a result, any benefits you receive from these programs will be unaffected by your personal injury compensation. Nevertheless, you should seek legal advice from a skilled personal injury lawyer before you even talk to the liable party’s insurance provider. The reason for this is that the liable party and their insurer are not above using the fact that you obtain federal benefits as leverage to try and reduce your settlement amount.

Get Legal Help from an Experienced Philadelphia Personal Injury Lawyer

Are you asking does personal injury compensation affect benefits in Philadelphia? The short answer is yes, it can affect Medicare, Medicaid, SSI, SSDI and other benefits.

If you or a loved one sustained severe injuries in an accident because of another person’s negligent behavior while you’re also receiving federal benefits, contact Mattiacci Law, LLC today. Our skilled Philadelphia personal injury lawyer can review your case and develop a strategy to minimize or avoid any negative effects that your compensation could have on your federal benefits. Reach out to us online or call 215-709-7915 to arrange your free claim evaluation.

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