In some cases, you can settle your workers’ compensation claim rather than receive workers’ compensation checks over time, but accepting a workers’ compensation settlement is not the best resolution in every case.
Knowing when to settle your claim is something that an experienced workers’ compensation attorney can help you with.
If you have questions about settling your workers’ compensation case, please call Matt Fendon Law Group at (800) 229-3880 or use our contact form.
Types of Workers’ Compensation Settlements in Arizona
A workers’ compensation settlement pays you as an injured worker in one of two ways—as a lump sum or a structured settlement.
A lump sum settlement pays you the entire settlement amount all at once, while a structured settlement pays compensation over multiple installments.
Traditionally, Arizona workers’ compensation settlements allowed injured workers to reopen their structured settlements if they needed additional medical care to treat their work injuries.
However, in 2017, Arizona amended the Arizona Workers’ Compensation Act to allow for full and final settlements of workers’ compensation cases.
A full and final settlement lets you waive the possibility of any future medical care for known conditions. The payor insurance company must submit a summary of anticipated future medical expenses and medical maintenance benefits and their cost, which must be included in the settlement.
One of the advantages of a full and final lump sum settlement is that you receive more money up front. But a lump sum payment may not always be the most effective way to maximize your workers’ compensation benefits, especially if the possibility exists that you may experience future complications.
Settlement Negotiations With the Workers’ Comp Insurer
You may need to settle your long-term claims if you need workers’ compensation benefits for more than a temporary basis, such as with permanent injuries.
Not every worker’s compensation case settles, and not every settlement is negotiated voluntarily.
What is the Effect of a Settlement Agreement?
A settlement agreement replaces payments made to you through Arizona workers’ compensation. These settlements can cover medical care costs, including anticipated treatment and rehabilitation expenses, and may come as monthly or lump sum payments.
When you settle with the insurance company, you will agree to relinquish rights you would otherwise have through workers’ compensation in return for the settlement offer. Here are some of the considerations to account for when negotiating a workers’ comp settlement:
- If an insurance company disputes some of your injuries, a settlement may include payment in exchange for relinquishing the right to pursue those injuries through workers’ compensation. These settlements nullify your claim, preventing you from receiving further compensation for additional medical treatment.
- Some settlements can have the insurer continue to reimburse you for active, ongoing medical treatment and include a lump sum that is meant to cover any anticipated future medical expenses. However, a lump sum settlement generally does not consider long-term inflation effects on your cost of living or medical treatment. The longer your anticipated future needs are, the more you will need to consider whether a structured settlement would be better for you.
- Some settlements are full and final, meaning the lump sum covers all current and future medical treatment and any workers’ comp payments. Arizona law requires that the amount also consider your age and life expectancy.
- If the original full-and-final settlement does not completely cover your needs, it can be difficult to reopen.
- The ICA reviews full-and-final settlements to confirm their compliance with Arizona legal requirements. They do not ensure that a settlement is in your best interest.
- Settlements can affect your ability to receive future Social Security Disability Insurance benefits you may be entitled to now or in the future.
- A lump-sum settlement should consider federal Medicare restrictions on how you use funds for future medical expenses related to workplace injuries.
With your health and financial well-being on the line, seeking legal guidance can help you determine your best course of action.
The Need for Legal Consultation Before Settling
Because settling a workers’ compensation claim may involve giving up critical rights and benefits, you should consult a workers’ compensation attorney before negotiating a settlement or accepting a settlement offer from their employer or the insurance company.
A lawyer can help you calculate a fair settlement amount based on the benefits you can expect to receive throughout your workers’ compensation claim. A lawyer can also discuss the suitability of a full and final settlement and explain the ramifications of such a settlement.
Matt Fendon Law Group Can Help Settle Your Arizona Workers’ Compensation Claim
The legal team at Matt Fendon Law Group provides solid legal advocacy to injured workers in Arizona. For over a decade, our attorneys have fought to protect workers’ rights, so they receive maximum benefits from employers and their workers’ compensation insurers.
Before settling your Arizona workers’ compensation claim, talk to an attorney at Matt Fendon Law Group. An experienced workers’ compensation lawyer will review your case and discuss with you whether a settlement agreement is in your best interest.
Call us today at (800) 229-3880, or use our contact form to schedule a free consultation.
