Benefits vs. Group Benefits

Sometimes an employer or injured worker may confuse workers' compensation to group benefits. There should be no confusion. The two benefits are distinctly different.

Group benefits are disability payments received for a non-work-related injury. Termed "sickness and accident (S & A) benefits," the group provision is no substitute for workers' compensation, which covers an on-the-job injury. If you become injured at work, you should apply for workers' compensation.

There are other reasons why workers' compensation benefits are better than group benefits:

  • Taxes - Unlike group benefits, workers' compensation payments are not subject to taxes; withholding taxes are deducted from group benefits.
  • More Money - Workers' compensation pays better benefits. Under the insurance, you receive two-thirds of your gross pay or $529.00 per week, whichever is lower. Group benefits are usually less than $150 per week.
  • Longevity - Workers' compensation covers the total disability with payments for as long as you need it. Depending on the injury, the payments can last for the rest of your life. Generally, group benefits last for up to 26 weeks — usually less.
  • Pay Scale Adjustment- A person injured, who goes on workers' compensation and works certain tasks because of his or her injury, will not suffer a substantial pay loss. Workers' compensation pays two-thirds of your pay loss if you return to work at a lower-rate, limited-duty job because of your injuries. Group benefits do not pay this adjustment
  • Medical Coverage - Workers' compensation pays all of your medical bills. Under a group benefits plan, your coverage may be limited depending upon the insurance carrier your employer selects.

In some cases, employers may deny you workers' compensation benefits. Should this happen, apply for group benefits. Once you start receiving payments, contact an attorney and file for workers' compensation.

Once approved, workers' compensation will pay all your medical bills in addition payments equal to the difference between the workers' compensation benefits and the group benefits.

If you have a workers' compensation question that you would like answered please contact us with your question or call 1-800-318-LAW1.

< Back to Injury Benefits