Brown & Joseph’s team of recovery experts are very knowledgeable on common causes resulting in short term disability overpayment and understand optimum way to recover the overpayment according to policy guidelines and applicable regulations.
Our recovery experts perform necessary investigative work to identify the reason for overpayment. Some of the common reasons for short-term disability (STD) overpayment are:
- Incorrect Reporting of Income: If an individual or employer incorrectly reports the income or earnings during the disability period, it can lead to overpayment.
- Employer’s Failure to Report Return to Work: If the employee returns to work earlier than expected but the employer or insurer fails to update this information promptly, the beneficiary may continue receiving benefits they are no longer eligible for resulting in overpayment.
- Calculation Errors: Mistakes in calculating the benefit amount, such as applying the wrong percentage of salary or not accounting for other deductions, may result in an overpayment.
- Retroactive Benefit Payments: Sometimes, payments that were delayed or initially denied may be issued retroactively. If not properly adjusted for previous payments, may result in an overpayment.
- Failure to Report Other Benefits: If an individual receives other disability-related benefits (e.g., workers’ compensation, Social Security disability benefits) but fails to report them, it may result in an overpayment of the STD benefits.
- Overpayment due to Ineligibility: If the claimant continues to receive benefits after they are no longer eligible, this may be due to oversight or a failure to provide updated medical documentation confirming the ongoing disability.
- Miscommunication: A lack of clear communication between the insurance provider, employer, and employee can lead to misunderstandings about benefit entitlements, leading to overpayment.
- Employer-Sponsored Benefit Programs Confusion: If both short-term disability and sick leave are available, employees may mistakenly use both benefits simultaneously, which can result in overpayment
The Brown & Joseph team is highly focused on protecting our clients’ brands across each of these models – while preserving the claimant relationship and maximizing recoveries.
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