If you have been hurt through no fault of your own, a personal injury claim could make a tremendous difference in your life. From paying your medical bills to replacing the wages you lost during your recovery, settling your personal injury lawsuit could help you avoid the financial strain that can follow a severe injury.
There are often a lot of moving parts when it comes to resolving a personal injury claim. While the compensation you receive could alter your life in a favorable way, there could be repercussions related to other monetary benefits you currently receive.
The attorneys of Olson & Sons could help you understand how your personal injury settlement might impact other benefits you receive. What’s more, our team could advise you when benefits might bar you from recovering a monetary award at all. Reach out today to discuss your options with Olson & Sons.
A Settlement Could Impact Your Medicaid Benefits In Kona
If you are on Medicaid, you could see your benefits interrupted following a personal injury settlement. Medicaid is a needs-based program, and an increase in your income could cost you those benefits.
There are some strategies that could allow you to settle your personal injury case without putting your Medicaid benefits at risk. For example, you could set aside much of your settlement for future medical bills to protect your benefits.
Personal Injury Compensation Could Also Affect Your SSI Benefits
One of the most important ways your personal injury compensation could impact your life is if you recover benefits from Supplemental Security Income (SSI). The problem that arises with SSI benefits following a personal injury settlement is the fact that these benefits are means tested. If you or your household make too much in direct or indirect income, you could no longer qualify for SSI benefit.
SSI is designed to support individuals facing severe financial hardship, and the income requirements are strictly enforced. If your personal injury settlement puts your total assets above the income threshold, the federal government could suspend your benefits.
The good news is that there are some strategies available that could protect your benefits in case following a settlement. It is possible to spend some of your assets on exempt resources like your mortgage payment. This type of spending could lower you beneath the income threshold and protect your SSI benefits.
Benefits Paid Through Social Security Disability and Medicare Are Unaffected In Kona
Thankfully, not every type of government benefit is at risk if you are successful in recovering compensation for your injuries. In general, only benefits that require some form of financial need are impacted by personal injury compensation.
One of the most common forms of benefits that are not affected by your injury settlement are those benefits that come from Social Security Disability. Social Security Disability—or SSI benefits—do not include means testing. That means you could qualify for SSI benefits regardless of your other sources of income.
The same is true for Medicare recipients. Like SSI, these benefits are not conditioned on having limited financial assets. Instead, recipients of Medicare and SSI buy into these insurance programs during the course of their careers. Because your personal injury compensation does not impact your previous work history in any way, these benefits are not affected.
How Workers’ Compensation Benefits and Personal Injury Settlements Interact
Your right to file a personal injury lawsuit could be diminished in cases where workers’ compensation insurance applies. This is because part of the workers’ compensation system includes a bar from pursuing a lawsuit for work-related injuries in many cases.
If you were hurt at work, the chances are good that you are unable to file a civil lawsuit against your employer. In most cases, these rules limit your ability to pursue a claim for damages against coworkers as well. There are exceptions to these rules that are best explained by an experienced attorney.
It is helpful to note that access to workers’ compensation benefits will not always bar you from pursuing legal action. If your injuries resulted from an injury caused by a third party you could file a lawsuit against that individual or entity.
Talk to Olson & Sons About How A Settlement Could Impact Your Benefits In Kona
It is possible for your personal injury compensation to affect your benefits. If you receive benefits through Medicaid or SSI you could find that you no longer qualify. Thankfully, there are steps you can take to protect these benefits.
If you have questions about what a personal injury settlement could mean to you, the team at Olson & Sons has the answers. Call right away to schedule your free consultation.