When a work-related illness or injury causes you to miss work, workers' compensation insurance should step in to help make things easier. This insurance is free of charge for employees, and it pays hurt workers a partial salary in addition to medical treatment costs while the worker recovers. In some cases, hurt workers could be entitled to a lump sum settlement. Unfortunately, some workers may miss out on some important benefits if the timing is not right with this settlement. Read on to find out why accepting a premature lump sum settlement may not be in your best interest.
Maximum Medical Improvement and Settlements
Traditionally, workers' comp insurance pays an initial level of benefits for a certain amount of time, and then the worker undergoes a special type of medical examination. The independent medical exam (IME) is often performed once the worker has been on partial disability wages for a few weeks or months, depending on the nature of the injury or illness.
The purpose of the exam is to have a new doctor examine the hurt worker to determine their health status and assess whether they are ready to return to work. If they are, the worker must return to their previous job. If their status is still evolving, they may need a bit more time out of work, and their benefits will continue. A third option is also possible. If the worker has reached a plateau in their healing and no further improvement is expected, they are ruled to be at maximum medical improvement (MMI). The worker is not able to return to their previous job and is thus eligible to be paid a lump sum settlement from the workers' compensation insurance company.
What to Understand About Settlements
A workers' comp settlement is based on several factors, but the medical status of the hurt worker is of primary importance. The more severe the injury and the greater likelihood of it becoming permanent, the higher the settlement will be. The results of the IME are key when determining the settlement payout.
When Settlement Offers Are Premature
Knowing the full extent of a hurt worker's medical condition is vital. If a settlement offer is tendered before the worker undergoes an IME or before their medical condition has plateaued, the worker could end up accepting a settlement based on inaccurate medical condition information.
Any time a settlement is offered, workers must be extremely cautious about signing a release. Speak to a workers' comp lawyer to ensure that you are receiving the full amount of compensation you deserve.
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