I was paid disability pay in 2016 and the medical benefits used were primarily from 2016. In 2017 I received a personal injury settlement for my pain and suffering/medical expenses. I used medical benefits thru my employer to seek treatment and they paid me short term disability pay for the time I was out of work due to surgery and treatment. My employer filed a lien for the medical benefits used and a separate lien for the disability pay. They sent a copy of the lien to the auto insurance company, so they received payment for both liens and I was sent a check for the difference. The insurance company said they are required to pay liens that resulted from the accident prior to paying me. The disability pay was included and taxed on my 2016 W2. I just settled with the insurance company last week.
