Andrews v. Blue Cross Blue Shield of Nebraska Employee Group Long Term Disability Insurance Plan

Andrews v. Blue Cross Blue Shield of Nebraska: What Workers Should Know

The Dispute

Andrews had a long-term disability insurance plan through their employer. When calculating disability benefits, a disagreement arose over how to count commission income. Andrews argued that commissions should include money earned but not yet received, while the insurance company counted only commissions actually paid during the relevant time period.

The Court's Decision

The appeals court sided with the insurance company. The court ruled that only commissions *actually received* in the twelve-month period before the disability began should count toward calculating benefit amounts—not commissions that were earned but not yet paid.

Why This Matters

This ruling clarifies how insurance companies calculate disability benefits for workers who earn commissions. If you receive commission income and become disabled, your benefits will be based on money you've actually received, not money you've earned but are still waiting to collect. Workers in commission-based jobs should understand this distinction when reviewing their disability coverage and calculating potential benefits.