When faced with a work-related injury, you may have significant concerns regarding your worker’s compensation benefits and other employer-sponsored benefits. Navigating how your worker’s compensation benefits affect other employer-sponsored benefits, and vice versa, can be a tricky task. Gaining a clear understanding of how both types of benefits work will help alleviate fears while dealing with your work-related injury.
If you’re injured at work in the state of Indiana, it is the employer’s responsibility to provide and pay for medical treatment related to this injury. This form of “directed care” means that the injured worker will not need to use any form of personal health insurance to cover medical expenses related to the work injury. While most workers receive health insurance coverage from their employer, the worker’s compensation insurance carrier is still required to furnish payment for this medical treatment, not your normal health insurer.
In any event you are placed off work due to your work-related injury, or your employer is unable to accommodate your work restrictions, the worker’s compensation insurance carrier is responsible for providing temporary total disability (TTD) benefits while you are off work. While these benefits are paid a reduced rate, based upon your average weekly wages prior to the work-injury, these are also non-taxable under Indiana law. While this can be extremely beneficial for the injury worker, it also means that your weekly benefits are most likely no longer contributing to any employer-sponsored benefits being offered.
This situation can significantly affect employer-sponsored benefits, including health insurance, short-term and long-term disability, FMLA, paid time off (PTO), and sick leave. Since the injured worker is receiving weekly benefits at a reduced, non-taxable rate, no contributions are made from these payments toward health insurance deductibles or other employer-sponsored benefits. If an injured worker is off work and receiving temporary total disability (TTD) benefits for an extended period, they may expect to see a loss of coverage, such as health insurance, if the employee is not paying the deductibles on their own. This of course varies depending on the policies of each employer.
Similar instances of an injured worker being unable to work for a significant period of time could also expect to see changes in their contributions to retirement benefits, 401(k) plans, accrual of paid time off (PTO), sick leave, etc. Some employers may suspend contributions while the employee is not actively working, while others may offer options to continue contributions, either from the employee’s own funds or through alternative arrangements.
Understanding the intersection of workers’ compensation and employer-sponsored benefits is crucial to ensuring you receive all the benefits you’re entitled to and that you’re not missing out on any additional support during your recovery.
Confused about a legal issue? Need help with a worker’s compensation claim? Connect with an experienced attorney who can help you navigate the legal process and provide you with assistance. Finderson Law LLC offers free consultations to discuss your case. Give our firm a call at (260) 667-9187, use the chat box on our website, or text us using the website link!
We are always here to help bring our clients comfort, hope and ease regarding the complications of the law. As attorney Roger Finderson is now licensed in Florida, we are happy to help Floridians alongside our Hoosiers in every way.
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