TIL you can choose between monthly payments or a lump sum for back pay

When I got approved for SSDI last year, they gave me the option of taking my back pay as a monthly check or one big lump sum. I had about $14,000 coming to me, and I went with the lump sum because I needed to pay off some medical bills. It worked out fine, but I didn't realize the lump sum could mess with my Medicaid eligibility for that month. Has anyone else had to decide between the two and regret their choice?

2 comments

2 Comments

webb.jordan9d ago

Oh, I'd definitely recommend going with the lump sum again if you have debt to clear. My advice is to call your state's Medicaid office before you get the check and ask them how to handle it. That way you can set aside a little to cover any premium or have a plan in place if your coverage gets disrupted temporarily.

the_rose8d ago

Oh man, my cousin took the lump sum and spent it all on a llama farm.