If you were hurt at work in Massachusetts, you may face an important choice. You can keep getting weekly checks, or you can take a lump-sum settlement. A lump sum can feel appealing because you get a single large sum. But choosing to accept the offer is an irreversible choice. It is wise to weigh the pros and cons before you sign.
What you sign away
In Massachusetts, a lump-sum settlement is a voluntary agreement between you and the workers’ compensation insurer. In exchange for a one-time payment, you agree to release the insurer from specific future obligations. When an Administrative Judge reviews the agreement and determines it is in your best interest, it becomes legally binding.
The biggest risk involves your future medical care. Many insurers push for a full release that absolves them of all responsibility for medical expenses related to your injury. However, remember that an accepted workers’ compensation claim generally does not allow the insurer to cut off your rights to reasonable and necessary future medical treatment.
Factors impacting settlement value
The value of your compensation is not a fixed number, so be wary of initial estimates. Several factors dictate the “true” value of your claim, such as:
- Future earning capacity: If your injury prevents you from returning to work, your settlement must account for your reduced ability to earn a living.
- Age: Your age plays a dual role. Younger workers may have decades of potential earnings lost. Conversely, older workers must consider how a settlement interacts with retirement and Social Security.
- Medical outlook: You should never settle until you have reached Maximum Medical Improvement (MMI). Settling risks prematurely leaving you with a payout that cannot cover unexpected surgeries or ongoing therapy.
Never settle unless you know the complete picture of your injuries and the full scope of your compensation. Your legal representative should carefully evaluate the details of your medical status and employment history.
Avoiding pitfalls
Settling your Massachusetts workers’ compensation case can be a major decision. If the insurer’s offer is unclear, consider speaking with a legal professional with experience in workers’ compensation. Medical coverage is an important benefit and it can affect your recovery over time.
