Workers’ compensation pays critical benefits to those injured on the job. For example, you should not have to pay your medical care—your employer’s insurance company will. Also, you might qualify for wage loss benefits if you can’t work temporarily, or you might even qualify for permanent disability benefits.
Surprisingly, many workers’ comp cases settle. However, you should never agree to a settlement without talking with a Des Moines workers’ compensation lawyer. Some settlements are bad for workers, and you need help from a seasoned advocate to determine whether a settlement offer is fair or whether you should hold out for more. Reach out to Ball, Kirk & Holm, P.C., to schedule a free consultation with our firm. We are always available, 24/7, to talk with our clients.
Benefits of Settling a Workers’ Compensation Claim
Workers injured on the job should receive benefits for as long as they need them. Someone with a permanent disability could have ongoing medical expenses until the day they die. They might also never be able to work again, so they should continue to receive workers’ comp benefits for wage loss.
However, you might also settle your claim, which allows you to get all your benefits upfront instead of waiting for them to be paid out monthly. There are many advantages to settling:
- You can use the money however you want, e.g., to pay off bills or invest;
- You will know how much you will receive, which removes uncertainty;
- You are guaranteed to receive these benefits. For example, the state might change the workers’ compensation law, but you’ve already been paid.
Most people settle after reaching maximum medical improvement (MMI). This is the point where your medical condition has improved as much as it ever will. Additional medical care will not make your condition better. After reaching MMI, we can assess any residual impairment that remains and how much it might qualify for in terms of workers’ compensation benefits.
Why Settling is Risky
There’s always risks involved with settlements. If you agree to a final settlement, you can lose your right to seek more compensation if your condition worsens dramatically. Instead, you are stuck with the amount you agreed to several years earlier.
You also don’t want to agree to a settlement that is too low. Therefore, working with an experienced lawyer is beneficial. We can calculate how much you should receive given your impairments and likely medical needs. We can also get a settlement that protects you.
Types of Workers’ Compensation Settlements in Iowa
There are different types of settlements in Iowa workers’ compensation cases. Here are a few:
1. “Open-file” agreement for settlement. The two sides agree the injury is work related and how much damages the worker should receive. You must file the settlement with the Workers’ Compensation Commissioner, who will ensure the settlement is valid and the workers’ rights are protected. Typically, workers are entitled to lifetime benefits for medical care and reserve the right to seek additional compensation if their condition worsens by bringing an action to review-reopen the case.
2. “Closed-file” compromise settlement. You can sign this settlement when there is a disagreement about the employee’s benefits. If a worker signs a compromise settlement, then their future rights are ended. That means you can’t reopen a case to get more compensation if your situation declines. This is a critical difference from an open-file settlement.
3. Contingent settlements. This type of agreement is conditioned on something happening in the future, such as getting approved for Medicare. If the contingency does not occur within a certain amount of time, then either party can petition to vacate the settlement.
4. Hybrid settlements. Some settlements are hybrid in nature. Both sides might agree to a full and final disposition of part of a claim but not all of it.
Which type of settlement is best for you? It depends on your situation.
Some workers assume an “open file” settlement is best because you can always come back to get more if you need it. However, insurers have an incentive to provide a lower payment with an open-file settlement for precisely this reason—you might be back in 5 or 10 years asking for more compensation because your condition has declined.
By contrast, insurers tend to offer more upfront with a compromise settlement, because they know this is the last check you will ever get from them.
No settlement works best for all people. Instead, we’ll use our experience to review your medical records, including your prognosis. We can also work with doctors to estimate the cost of your future medical care. Then we’ll discuss settlement options with you.
You should work closely with your Des Moines workers’ compensation lawyer to ensure you are comfortable with any settlement that you sign. Ultimately, it’s up to the worker to agree to a settlement. Your lawyer cannot accept a settlement over your veto. The state agency will review settlements and sign off if substantial evidence supports them. But there is no greater protection than hiring an attorney of your own. Your own lawyer can push to receive the most compensation possible. We can also check whether you can bring a lawsuit against a third party for causing your on-the-job injury.
Have Questions? Call Our Firm to Speak with a Seasoned Workers’ Compensation Attorney
Ball, Kirk & Holm, PC, realizes that workers’ compensation cases are complex, and many injured workers benefit from our experience when navigating the system. Call us to schedule a consultation. We have negotiated settlements for hundreds of workers injured on the job.
A lawyer can help you decide if settlement is even right for you in the first place. Maybe you will simply receive benefits each month. If you are curious about a settlement, we can discuss how much your claim is worth and whether you should accept an insurer’s offer or hold out for more. Call us to schedule a free consultation with our Des Moines workers’ compensation attorneys.