Workers Comp Settlement Calculator

Workers compensation settlements typically include three components: permanent partial disability (PPD) indemnity based on impairment rating, future medical care, and any past unpaid TTD (temporary total disability). Settlements are governed by state law — formulas, attorney fee caps, and procedures vary widely. Source: state workers comp boards, AMA Guides 6th Edition.

PPD Calculation

Permanent Partial Disability = State Maximum Weeks × Impairment Rating × Comp Rate. The comp rate is typically 2/3 of the worker's average weekly wage (AWW) before injury, with state-set maximum and minimum. Impairment rating comes from AMA Guides 6th Edition evaluation by a workers comp doctor. State maximum weeks ranges: 300 (TN), 400 (PA), 500 (CA), 600 (TX) — wide variation.

Future Medical and Medicare Set-Aside

If the worker is Medicare-eligible or will be within 30 months, federal law requires a Medicare Set-Aside (MSA) account to protect Medicare's secondary-payer interest. The MSA pre-funds future workers-comp-related medical care. Non-compliance: Medicare can refuse to pay related care and recover from worker. MSA review costs $1,500-3,500 — required for any settlement over $250k or anytime Medicare interests are at stake.

Lump Sum vs Structured

Lump sum (Compromise & Release in CA, Clincher in NC): one-time payment closing all rights. Worker gets cash now but loses future benefits. Structured: weekly/monthly payments for set period, often tax-free under IRC §104. Lump sum typical discount 10-25% vs nominal value because insurer avoids future inflation and care cost risk. Structured is safer for catastrophic injuries; lump sum better for moderate cases where worker wants to invest the money.

Last updated May 2026. Sources: CMS — Medicare Set-Aside, AMA Guides 6th Edition.