Guide to Workers’ Comp Future Medical Care “Buyouts”
When you have a work-related injury, there are a variety of ways that you can seek compensation. In many states, employers are required to have workers’ compensation insurance to operate legally. This makes sure that if you are injured at work, you will be properly reimbursed for medical and other expenses. Workers’ comp “buyouts” are a common practice insurance companies take to settle cases with one payment to you for your injuries. There are benefits and drawbacks to this method of compensation that you can consider with your unique case. This guide will explain more about workers’ compensation buyouts, why they’re offered, and how much you may be able to receive.
Related: Why You Need a Workers’ Compensation Lawyer in California
What are Future Medical Care “Buyouts”
Workers’ comp buyouts are when your companies insurance provider offers you one payment (a lump sum) to settle the injury case instead of paying money for your medical care over time. Taking a large payment from the insurance company may seem like an enticing offer to many, and sometimes it is the best solution for all parties involved. However, you should make some important decisions before you agree to let them buy their way out of your future medical expenses.
The “buyout” usually consists of one large lump sum payment to the injured. But, it can be split between a sum of money upfront and smaller amounts that are intended to satisfy your medical expenses for life.
As an injured party, you should always keep in mind that insurance companies never offer buyouts because they are required to. They give you the option of a buyout because it is the best option for them. As mentioned, sometimes a buyout will be the best deal for you (with help from an experienced lawyer), but sometimes a buyout isn’t your best option.
Are you considering a lump sum buyout from your work’s insurance company? Work with Invictus Law to win the largest possible payment.
Why Is The Insurance Company Offering You a Buyout?
The simple answer, as you may have guessed, is that it is the cheapest option for them. If you have been awarded substantial disability and medical compensation for your injury, the company’s insurance company is obligated to pay you the agreed-upon amounts for as long as you need care. This could be a lifetime of medical compensation payments that costs them a great deal of money over time.
Unfortunately, the insurance company isn’t always there to do what’s in your best interests. The insurance company wants to keep costs low and profits high. As a business, it sometimes makes the most sense for them to offer you a lump sum of cash to settle your claim, be done with payments, and close your case.
What You Should Consider With a Workers’ Comp Buyout
One of the biggest mistakes workers can make when accepting a buyout is shorting themselves money for (sometimes unforeseen) future medical costs. When you take the lump sum payment, you will be forfeiting the medical care you can take advantage of through the workers’ compensation system. You or your personal insurance will be covering any future medical expenses from then on.
This could be a great thing for workers, though, as some may have already healed from their injuries with no complications in sight. The lump sum could release them from the workers’ compensation program, pay off any remaining medical visits, and even provide some take-home money for their troubles.
How Much Can You Be Awarded With a Buyout?
Of course, this number will always vary by case, severity, and consulting with your lawyer. This will be a complex number that insurance companies will always want to keep as low as they can. It is incredibly important to consult your case with a lawyer that has years of experience getting clients the best possible outcome from workers’ compensation settlements. Your lawyer should be able to calculate the lifetime value of your treatment to ensure that you are being compensated at the highest point.
Every buyout offer includes unique elements that you must consider to know if a buyout offer is the right choice for you (no matter how attractive it may seem). Making the wrong decision now could end up costing you tens of thousands of dollars in the future. Make sure you aren’t underselling how much medical care you will need for the injury in the long run by consulting with the doctor in charge of your care.
Your lump sum should reflect every aspect of your care that you would seek in the future, like surgery, physical therapy appointments, scans, and everything else. You should also keep a few other things in mind, like if you were awarded a life pension, if it affected any retirement plan or pension, and if you can reopen the case according to the “five-year rule.”
Related: Reopening an Old Workers Compensation Claim
It is your lawyer’s job to assess all of these aspects and come to a fair agreement with the insurance company that gets you the largest buyout.
Want the best workers’ comp representation in California? Invictus Law has 30 years of experience helping clients get what they need from settlements. Contact us today to get started.
Work With Invictus Law to Maximize Your Buyout Payment
Invictus Law specializes in providing aggressive and efficient representation so you can be treated fairly and compensated properly for your injuries. Our experienced lawyers have recovered over $14 million for our clients. We will help you decide if you are getting the best deal possible, and we will help you fight for the largest workers’ compensation settlement.
Related: Future Medial Treatment Under California Workers’ Compensation Claims
