Navigating the complexities of Social Security Disability Insurance (SSDI) claims can be daunting, and understanding attorney fees is a crucial part of the process. When you receive a partially favorable decision, the Social Security Administration (SSA) will approve your fee agreement with your SSDI lawyer if it meets specific statutory conditions and no exceptions apply. In such cases, the fee will be authorized according to the terms you agreed upon.
SSDI Lawyer Fees in Cases of More Favorable Decisions on Appeal
If you decide to appeal and receive a more favorable decision that results in additional benefits, the SSA will recalculate your past-due benefits to include these new benefits. Consequently, an additional fee for your SSDI lawyer may be authorized under your existing fee agreement. This additional fee is subject to the limits of your agreement, but it will not exceed the lesser of 25 percent of the additional past-due benefits or the current specified dollar amount set by the SSA (for instance, $9,200 as an example, but this amount can change).
What Happens When the Maximum SSDI Lawyer Fee is Already Authorized?
In situations where the maximum fee has already been authorized under an approved fee agreement, and a subsequent favorable decision on appeal yields more past-due benefits, no additional fees will be authorized under the fee agreement. However, if your lawyer believes they are entitled to a higher fee due to extra work during the appeal process, they have the option to request an administrative review of the fee amount. This request must be filed within 15 days of receiving the fee authorization notice. A reviewing official will then assess the request once the SSA has finalized its actions on the appeal.
Adjustments to SSDI Lawyer Fees for Less Favorable Decisions
On the other hand, if an appeal results in a less favorable or unfavorable decision, both the past-due benefits (if any) and the previously authorized fee will be adjusted accordingly. In these instances, it is important to note that the SSDI lawyer is obligated to refund any excess fee that they may have received based on the initial, more favorable decision that was later altered on appeal.
