Understanding the Differences – Forbes Advisor – Technologist

There are some important differences between disability and workers’ comp benefits to be aware of. Here’s what you need to know.

Nature of Coverage in Workers’ Comp vs. Disability

Workers’ compensation is available to any worker with a job with a covered employer, which is the case for most workers in the United States. Employees do not need to do anything to get covered beyond working for a covered employer and could be entitled to benefits even if injured on their first day on the job.

Any work injury should entitle you to workers’ comp benefits, including payment of medical bills, wage loss benefits, and permanent or temporary partial or total disability benefits if applicable. This includes short-term disabling conditions.

Supplemental Security Income benefits are available to disabled Americans with limited income and financial resources. In contrast, SSDI benefits are available to those who have earned enough work credits in their working life to qualify for the program. Both provide only income, no coverage for medical care, and neither offers coverage for short-term ailments.

Eligibility for state and private disability insurance coverage depends on location and whether you or your employer purchased a disability insurance plan before the time of an injury or illness.

Source of Funding: Workers’ Comp vs. Disability

Workers’ comp benefits are provided by insurance companies employers hire to offer coverage.

SSI and SSDI are funded by the federal government, with SSI funding coming from the U.S. Treasury’s general fund, SSDI funding from payroll tax collection and the Social Security Disability Trust Fund.

Private disability benefits come from insurers, while states have different funding mechanisms for their disability programs.

Application Process for Workers’ Comp vs. Disability

To file for workers’ comp benefits, you’ll need to alert your employer to the injury or illness you developed due to job tasks.

Your employer typically alerts the insurer and workers’ compensation board about the injury, and the workers’ compensation insurer has a set period, such as 21 days, to take action on your claim.

If your claim is approved, you should begin receiving benefits. If it is denied, you can appeal or file a workers’ compensation lawsuit.

To file a Social Security disability claim, you may be eligible to apply online or visit a local Social Security office. You’ll need to provide documentation of a covered illness or injury.

Social Security disability claims are frequently denied, and you have the right to appeal through a multistage process, including a request for reconsideration and a hearing before an administrative law judge.

The application process for state and private disability benefits varies by program.

Duration of Benefits in Workers’ Comp vs. Disability

Social Security benefits are for long-term disabling conditions only. They can last until you pass away or become eligible for retirement benefits. The Social Security Administration will review your case periodically to determine if you still qualify for benefits. You must provide notice if you return to work or your condition improves.

Workers’ comp payments can last for the duration of your work-related ailment. You can continue receiving benefits until you have fully recovered, have returned to full employment or are medically able to perform other employment without a loss in earnings despite your condition.

Most state and private disability benefits programs also last for the duration of your injury.