Workers’ Compensation Redemption Amount

What is the average redemption amount for a workers’ compensation case in Michigan and how to maximize recovery?

The Workers’ Compensation Agency (WCA) has published its 2017 Annual Report. Data shows the average redemption amount in 2017 was just $58,156.09. More than 70% of cases were eventually settled through a redemption.

Many of our clients are shocked to learn this statistic because it does not sound like much money. This is especially true for a person who will have lifetime disability. Here are some things you should know.

Settlement is a great way for people on workers’ compensation to get away from the insurance company. It allows for medical treatment and vocational rehabilitation without interference or delay. A person can also start a new job without worrying about losing out on his or her benefits.

Individuals who are not currently receiving workers’ compensation can also settle their case. Cashing out future medical and wage loss means a person can move forward on their own terms. This money can be used to get retrained, start a business, or transition to a new job.

Some people also want to collect Social Security disability benefits. Settlement of workers’ compensation helps eliminate any offset.

Settlements are based upon how much the insurance company thinks it must pay in benefits. It is a business decision and fighting a case at trial is sometimes a cheaper option. Pain and suffering is not available.

Attorney fees are capped at 10% of the total settlement if workers’ compensation benefits are being paid. The fee is 15% of the first $25,000 and 10% on the remainder if workers’ compensation benefits have been disputed. The initial consultation should always be free.

Understanding legal issues and knowing how to negotiate is the best way to get maximum recovery. We recommend speaking with an experienced attorney who can help with your individual situation.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 316-8033 for a free consultation today.

Related information:

5 frequently asked questions about settlement

Photo courtesy of Creative Commons, by free pictures of money.

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