Aetna Beats Would-Be Class Suit Over Disability Benefit Offsets

Aetna Life Insurance Co. defeated a proposed class action claiming it wrongly offsets disability plan participants’ monthly payments to account for disability benefits they receive from the Social Security Administration, according to a ruling by a federal judge in Kentucky.

The named plaintiff, Cloman Smith, began receiving Social Security disability benefits after the date he became disabled under the terms of his Aetna disability plan, Judge Karen K. Caldwell of the U.S. District Court for the Eastern District of Kentucky said Tuesday. Under the plan’s “plain language,” Aetna “must” deduct these Social Security benefits from Smith’s monthly payments, Caldwell said. ...