How Much Does it Cost to Hire a Disability Representative

If you are in the process of filing for Social Security Disability benefits, you should be aware of your right to representation. There is a common misconception that if someone becomes unable to work, that they are just as well off to go to their local SSA office and simply “sign up� for disability. The truth is that the disability claims process is extremely complicated, even for well documented impairments. But studies prove that the chances of allowance are greatly enhanced if you have professional representation. It is absolutely worthwhile to hire a representative to assist your claim, even at the initial application level.

Some applicants may shy away from hiring a representative because they assume they will have to pay an exorbitant out of pocket retainer or fee. Many would be surprised to learn that they may not have to pay any fee unless they are approved and they receive back pay from Social Security. Back pay, or past due benefits, refers to the lump sum payment from Social Security that includes the benefits for all of the months that you were eligible for payment until your claim is approved. Below are some common questions representatives get about fees and the answers may surprise you!

What is the standard fee I would need to pay a representative to help me with my disability application or appeal?

The standard fee agreement is 25% of past due benefits up to a maximum fee of $6000. This is a contingency fee, meaning it is only due if your case is approved and SSA owes you backpay. There are some special circumstances where a representative would submit a fee petition to SSA detailing the time spent on your claim and requesting an hourly fee. It is important to communicate with your representative regarding the fee so that you know exactly what you will be responsible for paying.

Does SSA have to approve the fee before I pay it?

Yes. A representative is not allowed to charge any fee for services without it first being approved by SSA. SSA must authorize all representative fees for services at the administrative levels of the Social Security claims process.

Are there out of pocket costs that I would need to pay a representative before my case is approved?

Maybe. Administrative costs, such as medical records, mail, etc. are not included in the standard fee and some representatives will request reimbursement or payment of these expenses. SSA does not have to approve administrative fees and considers them a matter between you and your representative. Some applicants may not pay a dime until their claim is approved, so definitely be sure you ask your representative about their policy for handling administrative costs.

Do attorneys charge more than non-attorney representatives?

Whether you hire a disability attorney or an authorized non-attorney representative, the fee process is the same and you cannot be charged any fee for services without SSA’s prior approval. The standard fee agreement is a maximum of 25% of past due benefits or $6000, whichever is more, regardless of whether the representative is an attorney or non-attorney.

I heard that I am not responsible for the fee; that Social Security will pay the fee?

This is not correct. Most representatives have fee withholding, which means that Social Security simply deducts their fee from your back due benefits once your claim is approved. It is still your money, it just goes directly to your representative via Social Security, per your fee agreement. Representatives may receive their payment before the claimant gets paid, or vice versa.

Is there any reason why my representative would get paid a fee when I don’t receive any back pay?

A few. A representative’s fee is a percentage of your total back pay that SSA calculates based on your onset date of disability, your application date, and your monthly benefit amount. There are some instances where an applicant has received payments from insurance companies or state/government agencies, where any back pay received has to be paid directly to the company or government agency instead. The representative will still be paid, and the claimant will still receive ongoing benefits, but some of the back pay, less the representative’s fee, is used to pay back an amount owed.

Will there continue to be a percentage deducted from my monthly benefits for my representative?

No. Your representative is only paid from your back pay, not ongoing benefits.

Now that we have answered some of the questions about the cost of disability representation, please consider the cost of not having disability representation.

Representatives are trained to maximize benefits owed to you. They understand technical issues that allow you to request an earlier disability onset, thus collecting more benefits that are owed. They know what it takes to win, and can help you gather the needed evidence. Having an experienced representative may result in your claim being approved faster. If you have a claim before an Administrative Law Judge, you should consider having a representative advocate for you at the hearing. Now that you know what the typical fees are for disability assistance, allow NADR to help you find a representative to help you with your claim! www.nadr.org

The National Association of Disability Representatives urges any disability applicant that is currently unrepresented, to call 1-800-747-6131 to be directly connected with a representative who serves their area.