How Much Does Sedgwick Take From Your SSDI Check?

If you've landed here asking about "Sedgwick" and SSDI payments, there's an important clarification worth making upfront — because it changes everything about how to answer your question.

Sedgwick Is Not an SSDI Program

Sedgwick is a third-party claims management company. It administers short-term disability (STD) and long-term disability (LTD) benefits on behalf of private employers and insurance carriers. It has no role in the federal Social Security Disability Insurance program.

SSDI is run entirely by the Social Security Administration (SSA) — a federal agency. The SSA calculates your benefit, approves your claim, and sends your payment. No private company like Sedgwick is involved in that process.

So if you're wondering whether Sedgwick takes a cut of your SSDI check: it does not, and cannot. SSDI payments are federal benefits. Private disability administrators have no authority over them.

What you may actually be asking about — depending on your situation — is one of two very different things:

If You Have Both Sedgwick LTD and SSDI Benefits 💡

This is where the real complexity lives, and it affects a significant number of disabled workers.

Many employer-sponsored long-term disability plans include what's called an offset provision. Here's how it works:

When Sedgwick (on behalf of your employer's insurance carrier) is paying you LTD benefits, and you're also approved for SSDI, the LTD plan typically reduces — or "offsets" — your LTD payment by the amount you receive from SSDI.

Example: If your approved LTD benefit is $2,000/month and you receive $1,400/month in SSDI, Sedgwick may reduce your LTD payment to approximately $600/month. The total income stays roughly the same, but the insurance carrier is now paying less out of pocket.

This is not Sedgwick "taking" money from your SSDI check. Your SSDI payment comes to you directly from the SSA, unchanged. What's being reduced is the private LTD benefit — not your federal SSDI payment.

Why LTD Plans Have Offset Provisions

Offset clauses exist because private disability policies are designed to replace a portion of your lost income — not to supplement it on top of SSDI. The policy language governing exactly how offsets work varies by plan. Some plans offset only primary SSDI benefits; others also offset dependent benefits paid to family members on your record. Some have a minimum benefit floor (often $100/month) so payments don't drop to zero.

Your specific LTD plan documents — not Sedgwick itself — set those rules.

If Sedgwick Helped You Apply for SSDI

Some employers use Sedgwick to coordinate SSDI applications as part of a disability management program. In that role, Sedgwick may assist with paperwork or timelines, but they do not determine your SSDI eligibility, and they receive no portion of your federal benefit.

SSDI eligibility is determined by the SSA and, at the initial review stage, by your state's Disability Determination Services (DDS) office. The decision is based on:

• Your work credits (earned through payroll taxes paid over your career)
• The severity of your medical condition and how it limits your ability to work
• Your Residual Functional Capacity (RFC) — what work-related activities you can still perform
• Whether your condition prevents you from performing Substantial Gainful Activity (SGA) — a threshold that adjusts annually

None of those factors involve Sedgwick.

What Can Reduce an SSDI Payment? 🔍

Since the question involves what gets "taken" from an SSDI check, it's worth knowing what the SSA itself can reduce:

Private companies like Sedgwick do not appear on this list because they have no access to federal SSDI funds.

The Variable That Changes Everything

If you're receiving LTD benefits through a Sedgwick-administered plan and SSDI, the actual dollar impact on your total monthly income depends on:

• The specific language in your employer's LTD policy
• Your approved SSDI benefit amount (based on your earnings history)
• Whether dependent SSDI benefits are included in the offset calculation
• Whether your plan has a minimum benefit floor
• The timing of your SSDI approval relative to your LTD claim

Those details live in your plan documents and your SSA award letter. How those two numbers interact — and what your net monthly income ends up being — is something only your specific figures can answer.