Major Differences Between Personal Injury Cases and SSDI Cases

Social Security Disability Insurance (SSDI) is the largest government program that offers insured workers with disabilities cash benefits and health insurance. Applicants must meet certain income requirements and have a medically determinable impairment to be eligible for and maintain SSDI benefits. People do not automatically lose their ability to earn money just because they receive SSDI compensation. There are several reasons why Social Security's judgment of impairment and the calculation of post-accident earning capacity in personal injury cases may differ. Here are the major differences between personal injury cases and SSDI cases.

Conditions Taken into Account While Determining SSDI Eligibility May Have Occurred Before The Disputed Occurrence.

SSDI benefits may be granted following an injury, but a preexisting medical condition or collection of preexisting conditions may determine them. The SSDI determination procedure considers any impairments an applicant reports, including injuries and chronic and degenerative disorders.

The Method Used to Determine Loss of Earning Capacity Differs From The Method Used To Determine SSDI Disability

A worker's projected earnings are determined by their ability to make decisions that maximize their earnings. This is known as their "earning capacity."  Determining economic losses resulting from a loss of earning capacity includes estimating the difference between pre-and post-injury earning capacities, adjusted to their discounted present value. Steps in determining their post-injury earning capacity assess their ability to work, potential accommodations, need for extra training or education, availability of occupations in the area, and predicted salary.

Contrarily, SSDI is assessed by how much a worker makes. The worker is turned down regardless of medical disability if their monthly earnings exceed a certain threshold. The application is only accepted if the predicted duration of the impairment is twelve months.

In conclusion, being eligible for SSDI benefits does not prove that someone has no or little ability to make a living. SSDI beneficiaries may not have a diminished earning capability in some circumstances due to other medical issues unrelated to litigation and earning disincentives. SSDI eligibility and continuation for those capable of earning high earnings result from restrictions and limits in the determination and review process.