Did you know that you could receive a Workers’ Compensation medical “buyout”?
That’s right. If you received a settlement by way of “Stipulations with Request for Award” or a “Findings and Awards” issued by a judge, a Workers’ Compensation insurance carrier may contact you about settling your case through a lump sum of money.
To some, this sounds like an intriguing offer. But, before you go ahead and take the lump sum of money, read up on the key factors you will need to consider. You will want to be prepared so that you do not lose out on the option that will give you the most settlement money and opportunities.
What’s a Workers’ Compensation Medical “Buyout”
A Workers’ Compensation medical “buyout” happens when a Workers’ Compensation insurance carrier offers to give you a lump sum of money to settle your case. This “buyout” settlement is usually given in one lump sum instead of several, but in some cases, the Workers’ Compensation insurance carrier may give you a combination of a partial lump sum and a set amount of lifetime payments. After you’ve been issued an Award entitling you to benefits of permanent disability of future medical care, you will be contacted by a Workers’ Compensation insurance carrier.
It’s important to know you don’t need and aren’t required to take the lump sum. So, while it seems like an attractive option now, let’s go over why it could be very problematic.
What are the main problems of a Workers’ Compensation Medical “Buyout”
There are some critical issues that arise with a Workers’ Compensation medical “buyout.” The biggest one being only given one lump sum of money to take care of your disability and/or medical bills. This could prevent you from having the ability to get your medical care paid for in the future if new medical problems start to arise. So, instead of Workers’ Compensation insurance paying for it, either your new insurance provider will assist you or you will be paying out-of-pocket.
Although some workers enjoy not having to rely on the Workers’ Compensation system for medical treatments, this is only the best option if the lump sum is large enough to cover all expected and unexpected medical treatments. Granted, this gives the person opting out the ability to fully control their own medical treatment. Yet, this could be risky for future expenses.
Not Sure What to Do Next: Contact EMD
Deciding between your Award benefits or a Workers’ Compensation medical “buyout” can be difficult, especially as you’ll need to factor in the costs of your current and future treatments. That’s where Erwin, McCane & Daly come in. When you work with us, you can trust that we’ll work to get you the best possible reward. We’ll guide you throughout the entire process and give you the best legal advice. If you have questions about a Workers’ Compensation medical “buyout” or need help, contact us today to schedule your free consultation! When working with us, you will have a trusted team in your corner.