What Is a Full and Final Settlement?
If you’ve been injured on the job, you may already know the basics of workers’ compensation, that, you can get wage replacement and medical benefits if you’ve been hurt in the course of your employment.
What happens, though, when you’re nearing the end of your claim and looking to move forward with your life? You might want to consider a full and final settlement.
But what is a full and final settlement?
For many injured workers, this can be a turning point for your claim, but it’s not something you want to take lightly. Here’s what injured workers need to know before agreeing to a full and final settlement in a workers’ compensation case.
What Does “Full and Final” Really Mean?
Before signing any documents, you want to know all the laws and regulations regarding your settlement. In a workers’ compensation case, a full and final settlement is the final resolution of your claim. At this stage, you’ll no longer receive weekly wage-loss payments or have your medical bills covered.
Instead, you’ve agreed to accept a lump sum payment. This is a one-time amount of money paid to you in exchange for closing your claim.
With this, you waive the right to any future benefits related to your workplace injury. So, you’ll be responsible for paying out any follow-up doctor visits, surgeries, and therapy. Plus, you won’t be eligible for additional wage replacement even if your condition worsens down the line.
Once a full and final settlement is approved by a workers’ compensation judge or board, your case is closed permanently. You can’t reopen it later.
Why Would You Choose a Full and Final Settlement?
Depending on the situation, there are a few reasons to choose a full and final settlement. For some, this is the chance to get financial stability. A lump sum can help pay off debt, cover out-of-pocket costs, or regain financial control.
Other individuals are just tired of dealing with the workers’ compensation system. This option allows them to get all their benefits at once. Some people use the settlement funds to retrain for a new job or invest in a new career path if they can’t return to their previous work.
In cases of disagreements about the extent of the injury or necessary medical treatment, a settlement may help both sides avoid lengthy litigation battles.
What Are You Giving Up?
While accepting a large lump settlement may be tempting, there are consequences. First, there’s a required medical waiver. With that, you are giving up the right to have your future medical care for the injury paid for by the employer or insurer.
You’ll also need to sign a wage loss waiver. If your condition worsens and you can’t work in the future, you can’t reopen the claim for additional wage replacement.
Once signed and approved, these settlements are almost always non-negotiable and non-reversible.
If you want to accept a full and final settlement, you have to ensure you are at your Maximum Medical Improvement (MMI) before closing your claim. At this stage, your doctors believe your condition is unlikely to improve with further treatment.
Consider Other Implications
Since these full and final settlements permanently close the door on your claim, they’re subjected to judicial review. A workers’ compensation judge will need to approve the agreement to ensure it is fair.
It could become complicated if you’re eligible for Medicare or are already receiving it. In some situations, the Centers for Medicare & Medicaid Services (CMS) may require a Medicare Set-Aside Arrangement (MSA). This makes sure that a portion of your settlement is reserved to pay for future medical expenses related to the injury.
Should You Settle?
Deciding whether to accept a full and final settlement is a personal decision and depends on several factors. If you’re unsure, it’s important to always reach out to a workers’ compensation lawyer. They can evaluate whether the amount offered is fair and whether the settlement truly serves your best interest.
Find Out More About Your Options
A full and final settlement in a workers’ compensation case can provide closure and financial stability, but also has serious, long-term repercussions.
Once the paperwork is signed and approved, you can’t go back.
Whether you’re considering a settlement or want to learn more about your rights after a work injury, Work Injury Advisor has the resources to help you make the best decisions for your claim.
