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Questions and Answers about Maryland Workers’ Compensation Settlements

Injured workers in Maryland can decide to pursue lump sum settlement of their claim at any time.  Given the fact many Maryland injured workers struggle financially, with and those without receiving wage loss benefits, ensuring proper timing of settlement is critical.  Mooney Law can help.

When is the best time to think about settlement of my Maryland workers’ compensation claim?

Ultimately, it is best to wait until the injured worker reaches what is called maximum medical improvement (MMI).  MMI is a technical term for ‘it is what it is’.  What this means is the injured worker has recovered to the point where additional medical treatment will likely not improve the medical condition.   Reaching MMI helps to ensure within settlement that the injured worker will have sufficient funds to pay for future medical care.  Settlement prior to MMI could lead to the injured worker paying for future medical care out of pocket.

What does my Maryland workers’ compensation settlement not include?

Workers’ compensation and settlements of workers’ co0mpensation claims do not include ‘pain and suffering’.  It’s a popular phrase out there in the public when someone is injured by the fault of another.  Pain and suffering is a level of damages in a personal injury suit, such as an auto accident.  However, the enactment of state workers’ compensation statutes eliminated pain and suffering in work related injuries.  Injured workers are entitled to wage loss benefits and medical care.  I often hear clients tells me they want to soak the employer for everything they can get due to the pain and suffering I had to go through.  Well, that is simply not reality.

Are Maryland workers’ compensation settlements final?  Can I reopen my case later?

Maryland injured workers who accept a lump sum settlement cannot re-open the claim later.  Once a one-time lump sum settlement is finalized, the work injury claim is final and over for good.  In comparison, injured workers who continue to receive weekly benefits may reopen the workers’ compensation a claim within five years after receiving their last payment.

Are Maryland workers’ compensation settlements considered taxable income?

No.  Workers’ compensation settlement funds are not considered taxable income at the state or federal level, meaning the lump sum money is tax free.

How is a workers’ compensation settlement amount negotiated?

It is extremely important to have an experienced workers’ compensation attorney negotiating for you and protecting your best interest.  Many factors go into determining case value, such as, current medical costs, future medical costs, permanency of the injury, lost wages, future earnings capacity, and more.  Experienced workers’ compensation attorneys are aware of all the factors that play into case value and know when an insurance company is trying to low ball you.

Do workers’ compensation settlements have to be approved?

Yes.  Settlement in Maryland must be approved by the Maryland Workers’ Compensation Commission.

How long does it take to receive my settlement check?

Generally, it takes about two to three weeks after an agreement is reached.  Generally, once an agreement is reached, the insurance carrier has 15 days to release the settlement funds.

If you are interested in attempting to settle your Maryland workers’ compensation case or have questions about your case value, call Mooney law today for a FREE consultation.  Call us at 717-200-HELP or 301-329-3630.  You can visit Mooney Law on the web at