Immediately following an injury or an illness, people generally go on sick leave. This sick leave, however, runs out sooner or later. What are the types of disability one usually encounters in work environments? And how does Maximum Medical Improvement (MMI) factor into the equation?
Short-term Disability
Short-term disability, or STD, will generally pay you part of your income after your sick leave runs out. STD may require an “elimination period,” which is a waiting period of 1-7 calendar days after the time of the injury or illness.
These STD benefits involve weekly payments, and they are almost always less than a year in duration. Most commonly, an STD payment will continue for 13-26 weeks.
STD coverage is usually not used for work-related injuries. Workers Comp is handled separately from STD.
A few life events that often fall into STD coverage:
- Childbirth – after your maternity leave ends (if you have maternity leave at your job), you can file for STD benefits to help cover the money you are missing from being able to work.
- A lengthy sickness
- An injury causing disability
Long-term Disability
LTD usually lasts more than six months. It starts after the sick leave and STD benefits have run out. If you have an STD policy in place but you foresee it coming to a close, you should apply for LTD, as there is often a 90-day or 180-day waiting period for LTD to kick in.
LTD is supposed to cover the injured or sick employee until he or she goes back to work, is no longer disabled, or becomes old enough to receive Social Security retirement benefits.
Some life events that LTD covers:
- Cancer – the period of time that you are undergoing chemotherapy or radiation treatments can often be paid out as LTD
- Mental disorders – this coverage, for depression, bipolar, schizophrenia, seizure disorders, or other issues, may involve hospitalization, but does not need to include hospital stays to qualify for coverage
- Circulatory problems (heart attack, heart disease)
- Severe back pain
- Osteoarthritis
- Injuries due to accidents
Permanent Disability
If you reach maximum medical improvement (MMI), then your doctor is saying that continuing treatment will not cause your condition to become significantly better. Your condition has “plateaued,” and you have improved as much as you will improve. If you have reached MMI but your illness or injury is still preventing you from working, then you may receive permanent disability benefits. Both STD and LTD are usually at a higher rate (a higher percentage of the weekly wage you received before the injury or illness) than permanent disability benefits offer.
Permanent disability is paid at a lower rate because it is intended as subsistence wages. If you are unable to work, and no treatment is available that will improve your condition enough to make work possible, then these disability payments will provide enough coverage to survive.
Ostensibly, these payments will continue until you reach retirement age and become eligible for Social Security. The SSA will continue eligibility reviews to determine if you are still permanently disabled. If the SSA rules that you are eligible to return to work, you still can appeal that decision.