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Workers Compensation Settlement in New YorkLump Sum SettlementsLump sum settlements are mandated for permanent partial disabilities. There are other times when it may be appropriate to accept a one-time workers compensation settlement in New York instead of receiving future payments. NY workers compensation settlementA NY worker compensation settlement is a negotiated and Board-approved agreement, between a claimant and the carrier or insurer. As a result of the agreement, the claimant receives a sum of money representing all future compensation for his/her disability, and the case is considered closed.
Cases are, for all practical purposes, no longer finalized with regular lump sum settlements, but are closed with Section 32 settlements. Unlike a lump sum settlement, a Section 32 settlement can be done with non-established cases as a means of avoiding protracted litigation. Such settlements can never be reopened or appealed to the Workers' Compensation Board or the courts. For that extra element of finality, Section 32 settlements are usually higher than the old lump sum settlements. However, there is an extra requirement for those settlements over $25,000 for those claimants who are receiving Medicare or are Medicare eligible. Medicare is not supposed to pay for medical services for established worker's compensation case injuries, and, in order not to shift the burden to the taxpayer for such services, Medicare will determine the extent of the medical portion of any settlement. That money will have to be put aside by the claimant in a separate account. When the claimant seeks medical attention for his/her worker's compensation injuries, s/he will have to pay out of that account and keep appropriate records. When the account is depleted, Medicare will begin to cover work-related injuries and illnesses. Completing the set-aside is a time consuming process which often delays the implementation of Section 32 settlements by three to six months over standard lump sum settlements. If the Medicare set-aside is excessive or exceeds the value of the settlement itself, the parties can resolve such cases with indemnity only Section 32 settlements which leave the medical aspect of the case open. In practice, lump sum settlements are usually final. However there is a provision in the law for reopening the settlement agreement if the Board finds that there has been a change in condition or degree of disability not contemplated at the time of the settlement. Some pros and cons of taking a New York workers compensation settlementA New York worker compensation settlement gives a claimant a lump sum of money and puts an end to the often frustrating and tedious dealing with the workers compensation system and processes. However, a claimant must assess the settlement offer very carefully because taking a lump sum settlement may not be the wise choice financially in the long run. Illnesses can get worse and become more expensive over time so lump sum payments should be examined and adjusted for inflation whenever possible. Read more about workers comp in New York resulting from on the job injuries Speak to an experienced attorney before taking a workers compensation settlement in New YorkIf you are injured on the job, the best way to ensure that your rights are protected is to speak to an experienced workers compensation attorney. A skilled New York workers comp attorney knows how to evaluate your case and how to fight to maximize the recovery you are entitled to receive. The lawyers at Klein Wagner and Morris LLP can help you get your claim on track and can advise you on the effect of taking a worker compensation settlement in NY. Contact us by calling one of our four New York offices, or use our handy online form to tell us a little about your legal issues. |
