Workers’ compensation offers essentially two forms of insurance: (1) disability insurance for the work injury and (2) health insurance for the work injury.

At a later point in the case, the employee and the workers’ compensation insurer wanted to close the case and so they entered negotiations for settlement. The employee, however, may be at a significant disadvantage in negotiations without an understanding of applicable laws and other benefits.

Understanding Workers' Compensation Settlements in Vermont

Types of Workers' Comp Settlements Explained

There are two basic forms of settlements, but no workers’ compensation settlement is binding unless and until it is reviewed by the Department of Labor and approved by the Vermont Department of Labor as a settlement which the Department of Labor determines is in the injured employee’s best interest:

1. Non-Medical, Limited Settlement Overview

A non-medical, limited settlement often is an agreement on the correct permanent partial disability benefits owed. Such an agreement does not close the case. The settlement makes clear that the injured employee has only agreed to settle for a specific claimable benefit and can continue to have the doctor, the prescriptions and other medical expenses for the work injury continue to be charged to the workers’ compensation insurer.

2. Total Lump Sum Settlement Explained

A Total Lump Sum settlement means the entire workers’ compensation insurance policy and case and claimable benefits, past present and future, are going to be forever closed, in exchange for the insurer’s agreement to pay a specific amount of money to the injured employee in a lump sum. That includes closing the employee’s right to claim any further medical or prescription expenses in the future.

If the employee is eligible for Medicare and/or Social Security Disability or SSI or Medicaid, there may be potential negative impacts upon eligibility for those and other benefits -- unless the terms are skillfully negotiated in detail and in the injured employee’s best interest. Careful attention to terms and conditions in negotiations is critical to avoid unnecessary problems.

Contact Us for Assistance with Your Workers' Compensation Case!

Being injured on the job requires medical care, appointments, and adjusting to the consequence of a work-related disability. It can become very stressful to go it alone when facing the additional pressure of trying to know your rights, choosing the better legal options, deciding whether to go to court or negotiate, taking the precautions to maintain your eligibility for Social Security and/or other benefits while maximizing the value of your workers’ compensation case in a settlement.

With more than 30 years of experience, I am ready to listen to your story, hear your questions, concerns, goals, and to help you achieve the results desired in your workers’ compensation insurance case.