When Will Workers’ Comp Offer a Settlement in Maryland?

In Maryland, a workers' compensation settlement offer can be made at any point during a workers' compensation case. However, the timing of when an offer is actually made and finalized depends on several factors, including the severity of the injury, the progress of the claimant's medical treatment, and negotiations with the insurance company. 

Typically, settlement offers are more likely to be presented once the injured worker approaches or reaches Maximum Medical Improvement (MMI), though some insurers may offer settlements earlier in an attempt to minimize future costs. Once an agreement is reached, it generally takes about 45 days to receive the settlement check, following the necessary approval from the Maryland Workers’ Compensation Commission.

Understanding the Workers' Compensation Settlement Process in Maryland

The process of receiving a workers' compensation settlement in Maryland involves multiple steps, and navigating these steps can be complex without proper legal guidance. Each step in the process, from the initial offer to final approval, plays a crucial role in determining when a settlement will be made.

The Settlement Process: Key Steps and Timelines

The timeline for a workers' compensation settlement in Maryland is not fixed and can vary depending on the specifics of the case. However, certain general stages can be expected:

1. Medical Treatment and Reaching MMI: One of the most significant factors that influence when a settlement offer is made is the injured worker's medical treatment status. MMI is the point at which the injured worker’s condition is stable and unlikely to improve further with treatment. Insurance companies often prefer to wait until MMI is reached before making a settlement offer, as it provides a clearer picture of the worker's long-term medical needs and potential costs. However, offers can be made before MMI, often at lower amounts, to close the case early.
2. Negotiation with the Insurance Company: The insurance company may present a settlement offer during negotiations, which can happen at various points throughout the claim process. These negotiations take into account the severity of the injury, medical expenses, the extent of permanent disability, and other relevant factors. Claimants can choose to accept or reject the offer, and negotiations may continue until both parties reach an agreement.
3. Settlement Agreement and Commission Approval: Once a settlement offer is accepted by the injured worker, the agreement must be documented and submitted to the Maryland Workers’ Compensation Commission for approval. The Commission will review the settlement to ensure that it is fair and in the best interest of the worker. This review process typically takes a few weeks, but in some cases, it may take longer, especially if the Commission requests additional information or a hearing.
4. Receiving the Settlement Check: After the Commission approves the settlement, the insurance company is generally required to issue the settlement check within 45 days. This period accounts for administrative processing and ensures that all procedural requirements are met. Delays can occur if there are issues with the paperwork or if the Commission requires further review.

Factors Influencing Settlement Offers

Several factors can influence when and how much an insurance company will offer in a workers' compensation settlement:

• Severity of Injury: The nature and extent of the injury play a critical role in determining the value of a settlement. Severe injuries that result in permanent disability or require ongoing medical care typically lead to higher settlement amounts.
• Medical Expenses: Past and future medical expenses are significant considerations. The insurance company will evaluate the cost of medical treatments already provided and anticipate future expenses, including surgeries, rehabilitation, and medication.
• Impairment Rating: If the injury results in a permanent impairment, a medical professional will provide an impairment rating. This rating reflects the extent of the worker’s disability and is a key factor in calculating the settlement amount.
• Vocational Rehabilitation: If the injured worker cannot return to their previous job, vocational rehabilitation services may be necessary. The cost of these services, which help the worker gain new skills and find alternative employment, will be factored into the settlement.
• Pre-MMI Offers: Insurance companies may offer settlements before the worker reaches MMI. These offers are often lower because they do not fully account for future medical needs. However, accepting a pre-MMI offer can be appealing to workers who need immediate financial relief.

The Role of the Workers' Compensation Commission

In Maryland, every workers' compensation settlement must be approved by the Workers' Compensation Commission. The Commission's role is to ensure that the settlement is fair and adequate given the circumstances of the case. This approval process includes a thorough review of the settlement agreement, and the Commission may request additional information or schedule a hearing if there are concerns about the fairness of the settlement.

Full and Final Settlements

A full and final settlement means that once the settlement is approved and the check is issued, the case is closed, and the injured worker cannot reopen the case in the future. This type of settlement is often pursued when the worker has reached MMI or when there is a disagreement about the extent of permanent disability. It is crucial for workers to understand that by accepting a full and final settlement, they are forfeiting their right to any future benefits related to the injury.

FAQ

How Do I File A Workers Compensation Claim?

To file a workers' compensation claim, first report your injury to your employer immediately. Seek medical attention and complete the necessary claim forms provided by your employer. Submit these forms to the Maryland Workers' Compensation Commission and keep copies for your records. Follow up to ensure your claim is processed, and consider consulting an attorney for assistance if needed.

How Much Does Workers Comp Pay In Maryland in 2024?

Temporary Total Disability (TTD): Benefits are two-thirds of the average weekly wage, up to a maximum of $1,456.

Permanent Total Disability (PTD): Benefits are the same as TTD, capped at $1,456.

Permanent Partial Disability (PPD): For awards under 75 weeks, benefits are one-third of the average weekly wage, capped at $486. For awards between 75 and 250 weeks, benefits are two-thirds of the average weekly wage, with a maximum of $486.

Temporary Partial Disability: Benefits are 50% of the wage difference between pre-injury and post-injury earnings, up to $728.

Serious Disability: Benefits are two-thirds of the average weekly wage, capped at $1,092.

Need Representation?

If you've been injured on the job and are navigating the complexities of a workers' compensation claim in Maryland, don't wait to get the help you deserve. Understanding when and how to settle your case can significantly impact your financial future. Contact our experienced workers' compensation attorneys today for a free consultation. We'll guide you through the process, negotiate on your behalf, and ensure you receive a fair settlement. Your recovery is our priority—let us help you secure the compensation you need to move forward. Reach out now to get started.