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If you receive a letter from MetLife claiming they’ve overpaid you and demanding thousands or tens of thousands of dollars, don’t panic. Instead, contact the offices of a St. Petersburg disability attorney as quickly as possible.
You applied for short-term or long-term disability benefits through your employer’s plan, managed by MetLife or another insurance giant or your applied for your benefits based on your disability policy.. You did everything right, and you were approved. Now you’re wondering if this is your fault and how you can ever repay that amount.
Or you may be wondering how MetLife could make such a mistake and then hold you responsible. If you are facing a MetLife disability overpayment scenario, don’t panic. A St. Petersburg disability lawyer can help you address this alarming situation.
How Do Disability Overpayments Happen?
When employers provide disability benefits, it’s usually through a group plan or policy governed by the federal Employee Retirement Income Security Act of 1974 (ERISA). Overpayments may arise from misunderstandings or miscalculations of other income you receive while on disability.
Group policies or plans often have provisions that reduce your disability payment dollar-for-dollar based on your deductible sources of income. The most common source of deductible income is Social Security Disability Insurance (SSDI) benefits.
The SSDI application process can take months and most likely years. While you wait, MetLife or your disability carrier or plan might pay your full disability benefit. When you’re approved, the Social Security Administration often provides a large lump-sum back payment to cover the period you were waiting.
What Generates an Overpayment Claim?
Group disability policies or plans almost always reduce your disability benefit when you receive a retroactive SSDI payment. If you don’t immediately inform the disability carrier or plan of your SSDI approval and repay the portion they say they are owed, you may trigger an overpayment claim.
Other potential deductible income sources include workers’ compensation benefits, retirement and pension payments, a personal injury settlement and income from part-time work, all of which affect the total calculation.
MetLife, as any plan administrator or carrier under ERISA, is responsible for accurately calculating and paying benefits, but complications often lead to substantial, confusing overpayments.
Do Not Repay or Agree to Anything Without a Proper Review
When you receive an overpayment notice, do not immediately send a check. Nor should you agree to any proposed repayment plan over the phone. MetLife or your disability carrier or plan will likely present the matter as very straightforward.
They may claim that you owe this money, that they are legally entitled to it, and that you must pay or set up a repayment schedule. Do not be intimidated, and don’t agree to anything or sign any documents they’ve sent you. Instead, consult a disability attorney.
Verify the Overpayment Claim
Making the wrong decision could jeopardize your ongoing disability benefits or leave you in an unmanageable financial situation. You have rights and options available under federal law and within your plan’s language.
You should challenge MetLife’s claim or your disability carrier or plan’s request and demand full documentation of their overpayment calculation. Request a detailed, itemized breakdown in writing that specifies how much they overpaid you for each week or month and what income sources were used to arrive at that figure.
Your request should be in writing to create a paper trail, sent via certified mail or another traceable method. When you receive MetLife’s documentation, compare their records and dates with yours, including your SSDI back payment and other deductible benefits.
Even a minor date or amount discrepancy can change the overpayment total MetLife or your disability carrier or plan demands. Mistakes frequently occur in these calculations, so confirming every figure is essential.
Solutions: Challenge the Claim, Request a Waiver, or Negotiate a Settlement
If you determine the overpayment claim is erroneous, you can challenge it. If the claim is valid, your alternatives are defined by your plan’s language and ERISA regulations. These are the options:
- Challenge the claim: If MetLife’s math is incorrect, you can challenge the validity or amount of the overpayment claim. This usually involves filing an ERISA appeal within the deadline set by your plan (usually 180 days for disability claims).
- Request a waiver: You can ask MetLife or your disability carrier or plan to waive the overpayment debt. This typically requires you to prove that the overpayment wasn’t your fault and that a repayment would cause severe financial hardship. Don’t be surprised if they deny your request.
- Negotiate a settlement: If you’re ineligible for a waiver, you can negotiate for a manageable monthly repayment structure that aligns with your current income and expenses.
A St. Petersburg disability lawyer can help you choose and pursue the right option.
State Laws May Not Apply
ERISA is a federal law that preempts most state laws in cases involving employer-sponsored benefits. You generally cannot apply specific state laws to stop MetLife or your disability carrier or plan from seeking reimbursement for overpaid funds if your plan’s language clearly permits it.
Your legal remedies and options come from federal statutes and the governing provisions of your employer’s plan, not state-level laws. Understanding this distinction is one reason why seeking advice from a St. Petersburg disability attorney can be so valuable in these cases.
Let an Attorney Help You
To make sure you are receiving the benefits you’re legally entitled to, and to remain compliant with Social Security and ERISA regulations, you should have the services and advice of a disability lawyer who can:
- Determine which benefits you’re eligible for and when to apply for them.
- Guide you through the complicated disability benefit application process.
- Ensure your application and accompanying paperwork are complete and accurate.
- Take legal action, if necessary, to obtain the benefits that are rightfully yours.
A disability attorney can help you resolve an overpayment claim and help you avoid other complications with your disability benefit payments.
Don’t Try to Handle a MetLife or Disability Carrier or Plan Overpayment Claim Alone
The Law Office of Nancy L. Cavey is here to help you confront these challenges. We are aggressively focused on securing and protecting disability benefits for our clients. We understand the burden you face.
Every client receives our full investment of time, abilities, and resources. Whether that means helping you file a claim or challenging an administrative overpayment, we can advise you and take appropriate action on your behalf.
Don’t let a MetLife or disability carrier or plan overpayment demand add to your burdens. We invite you to contact us at 727-477-3263 to schedule a free, confidential case review and discuss how we can help you with an overpayment claim or any other legal matter related to your disability insurance.
