Structured Settlements on Workers Comp Cases Make Sense
Cost savings and needs-based negotiations can deliver a win-win for all parties
Structuring Indemnity Drives Needs-Based Negotiations
Using structures on the indemnity portion of Workers Comp files helps drive settlement discussions to focus on non-medical needs instead of the typical demand/offer volley. Needs-based negotiations leverage the structure to maximize every settlement dollar to specifically address the unique needs of the claimant.
SHIFT RISK “SOFT SAVINGS”
Like MSAs, Indemnity settlement dollars can go farther when paid out in the future
Rated ages can reduce the cost of life contingent payments
Structures provide the opportunity for examiners to call the client with a settlement plan
Needs-based proposals highlight the risk of trial or not settling
Clients report the ability to reduce settlement payouts, lessen duration and reduce legal expenses
Structuring Medicals Offers Cost Savings
When settling the medical portion of a Workers Comp claim, a structured settlement offers an average savings of 35% over cash by simply annuitizing the MSA portion instead of paying cash.
The actual case below shows the use of a structure with a rated age to fund the MSA instead of funding the MSA with cash. Total savings: 45% or $337,000
MSA Allocation Report
Male, age 36, rated age 38, life expectancy 43
Medical (Medicare Parts A&B) : $ 324,174 00
Rx (Medicare Part D): $ 428,047 00
Total MSA : $ 752,221 00
Initial Deposit : $ 72,747 07
Annual Deposit : $ 16,177 95
Need Help? Ask your Ringler consultant about how they can provide reporting that you can share to show your value! By tracking cash vs. structured settlement outcomes, the picture becomes clear!
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