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Section 32 Settlements While Keeping Medical Portion Open

January 27, 2012 By Paul Giannetti

In the vast majority of Section 32 settlements, the insurance carrier requires that in return for the settlement payment the claimant give up all rights to future lost wage claims along with medical benefits.  The insurance carrier, when settling your case, wants to insure that their liability has ended and that no further expense will result from your claim.

In relatively rare circumstances, insurance carriers may offer a Section 32 settlement on the indemnity (lost wage) portion of your claim while keeping the medical portion open.  This usually occurs where the Medicare set-aside is required because a claimant is Medicare eligible.  If the Medicare set-aside amount is significant some carriers will consider keeping the medical portion open.  This means that the settlement proceeds will only represent future lost wages and the carrier will retain liability for your causally related medical costs.

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