The Social Security Administration (SSA) determines a standard fee paid to all Social Security Disability Insurance (SSDI) advocacy groups, including advocacy lawyers and attorneys. Freedom Disability is only paid if you are awarded cash benefits.
The Fee for Social Security Disability Representation Services
Advocacy groups, such as Freedom Disability, are paid 25 percent of the retroactive dollar amount of a Social Security Disability Insurance (SSDI) cash award. Again, this fee rate is set by the Social Security Administration (SSA). For the average person who may wait up to a year to get approved, the fee would be approximately $2,000 out of the total $8,000 in back pay awarded to them. But if the wait is longer and the retroactive award is larger, both the claimant and the advocate (Freedom Disability) are paid more. The maximum fee is capped at $6,000 and would only apply in situations where the applicant was awarded at least $24,000 in retroactive payments (i.e. 25%).
What is the Retroactive Dollar Amount?
If your application or appeal is approved, SSA will award you a monthly cash benefit. SSA also compensates you for the period of time it takes to approve your application which is the retroactive portion of your award. This retroactive award is a one-time-only lump sum that represents the number of past months you were entitled to benefits. Your entitlement date is set after a mandatory waiting period of five full months after SSA determines the date of your disability.
Here’s an example:
- SSA determines you became disabled in June, 2012.
- SSA requires a waiting period of five full calendar months in a row before you are entitled to benefits.
- Your entitlement for benefits begins December, 2012 (five full months after disability date)
- You receive your “notice of award” letter in December 2013.
- You should receive a retroactive cash lump sum, minus the 25% fee paid to your representative (e.g. Freedom Disability), which is set by SSA.
- The sum represents the months of benefits due to you from date of entitlement: December 2012 through November 2013 (12 months).
- Your first on-going monthly cash benefit is for December 2013.
Sample Calculation of a Retroactive Dollar Amount and Representation Fee
- Your monthly Cash Award: $1,000
- The period of time for approval process from date of entitlement of benefits: 12 months
- Total Retroactive Lump Sum: $1,000 x 12 months = $12,000
- Representation Fee: 25% of $12,000 = $3,000
- Remaining retroactive lump-sum payment = $9,000
You should receive a one-time-only lump sum of $9,000 followed by ongoing payments of $1,000 per month.
What You Can Expect from Freedom Disability
You can count on our experience as Social Security Disability experts to build the highest quality, first-time SSDI application. Should SSA initially deny benefits, we know how to build a strong case to appeal SSA’s decision.
- There are no upfront fees for our application or appeals services.
- There are no consultation fees for assessing your eligibility for benefits.
- There are no upfront costs for collecting medical records on your behalf.
- We receive a percentage fee on back benefits for you and your dependents.
- Our fee is determined by SSA and is paid to us by SSA only if we win your case.
Why Work with Freedom Disability
We want you to win Social Security Disability Insurance benefits because your health and financial future is too important to risk. Our goal is to give you back the freedom to live your life.