Monday, August 18, 2008

Lump Sum $10000.00

You are allowed in workers comp to lump sum $10000 and this is frequently done. When you have a Final Admission and the insurance indicates $10000 (more or less) is due a claimant then you can get an advance of up to $10000 without any effort except to send a letter for the funds. This is quite different from a Petition for Lump Sum which we seldom use. The latter may bind you to the Final Admission. But getting $10000 is usually fast and easy. Plus, it does not bind you to the figures used by the insurance. You still have the ability to dispute it provided you act promptly within 30 days as noted in the Final Admission and its accompanying paperwork. What many people do not know is when a Final Admission is sent the insurer is usually obligated to honor it and pay biweekly until the money runs out or until able to change it by law. It does not send you one big check. Can you object to the figures or to the doctor's report about maximum medical improvement or his rating of impairment? Yes and you can also get $10000 of the amount due you while you object or dispute it further. For example, the Final Admission admits for $20000 and you feel that is wrong. Usually you get the first $10000 and also receive biweekly checks until the $20000 runs out or as provided by law. Often this is done to assist the claimant as we proceed to take the dispute to the next level. That can take several more months and the funds can ease his or her financial fears. One last thing....when you ask for this sum it is discounted. It is like getting money you'd normally receive over time all at once so the law uses a 4% discount calulation. Colorado adjusts it each year but you can look at the chart right here. There is some difference between whole person (back, neck, head, etc) and schedule (fingers, arms, legs, etc) and this is noted on the chart since benefits are paid differently in this two areas.

No comments: