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100% dissabled cash out
#1
Hi,I am new to this fourm,I would like to hear your comments or opinions on this case , I will turn forty years old this year,I am 100% dissabled, I live in california, I need funds so i decided to cash out on my total dissability,I am reciving $1680 monthly and i have medical for life .The insurance company is offering me $400.000k minus 40k or 50k for lawyer and I will still have a medical paln for my needs as i will need a morphine pump for pain, my pain medication alone is about $4500 a month. I think they said i have a life expecttancy of 33 years so $1680 in 33 years would be like $660,000K, although i think my life expectency is a little higher. I have proposals with diffirent numbers on my age and life expectency
so I think there is a mistake somewhere, i think my total pay out should be higher, I would like to hear your opinions,advise or comments.
Thank You
 
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#2
start a new thread and ask 1171 see what you get from he? she?
Each day is not a rite,it's a given.


 
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#3
I am kind of confused because when you say " cash out " do you mean that you will take whatever offer ( 400,000 ) minus the lawyer fee's and then no longer have them pay for your medicine, doctor care, surgery if needed etc? What would you have for insurance after if you cash out? I mean just the medicine alone per month would eat that money up in no time.

Someone else may come along and be able to help you better. I just wanted you to know that someone is reading your post here, and if you could say what your disability is, and if there is any surgery planned for the future ( morphine pump) which i think ( not sure ) is implanted , would that be covered still if you " cash out"?
carpal tunnel recurrence/ neuropathy / RSD.
1/29/07 injury date. Permanent. PIR settlement 8/4/08 10%
 
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#4
Sparkey, the way I am reading the post, the but out would be in refence to lost of wages. With the numbers I saw, the ic is doing a one time pay out, which would be less than the total pay out if done in monthly installments.

Mrpain, with the medical left open for life, the chose can only be yours. If I am correct in my explaination to sparkey, you are looking at a $260,000.00 loss by taking a buy out. As far as the life expectency goes, I have no input other than to say that at the top of this page you will see a tab titled "info by state" maybe there will be something there that will tell you what it should be. As you know this is not a lite matter. There are some people here from California that should be along shortly.
8-05, Micro laminectomy/disectomy. 10-05 lumbar fusion L5-S1. 2-07 exploritory surgery. 12-07 medical implant, Spinal Cord Stimulator. now receiving SSDI. After going back to school, I received my degree as a mechanical engineer. What can I say, it was the only way I had to beat the system. 
 
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#5
if you are going to Compromise and Release your claim including future medical treatment you will undoubtedly be required to have a medicare setaside trust for the medical settlement portion of your dollars. this will require a professional lifecare plan --to make sure reasonably adequate costs are included.
To find out more see their website or discuss it with your atty
http://www.cms.hhs.gov/WorkersCompAgency...#TopOfPage
Smile
here's a standard life expectancy table
http://www.ssa.gov/OACT/STATS/table4c6.html
Cool
your atty should be working up the value of your disability benefits including any future COLAs.

when calculating a lump sum they will discount the raw figures to a present value by an interest rate of at least 3%.
http://www.comptools.com/present_value.htm
(at 3% total for PD is over $491,000)


there is also an option to cashout or "cummute" all or a portion of your your disability benefits and leave your medical coverage in tact. They are only allowed a 3% commutation fee for such a transaction and it has to be approved by the comp court with good reasons.
Rolleyes

any such settlement requires the court approval to make sure the amount is adequate for the benefits being released.
Reminder :
........Each state has their own comp system; POST YOUR STATE to get accurate information. Use the search feature to find information from similar questions.
THANKS FOR POSTING.
 
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#6
Hi,Let me clarify my self. I would still have a medical plan the insurance would buy a medical servie plan and they would turn it over to them for my future medical needs medications, morphine pump implant, pain manegment doctors,ect
so the medical would still be covered for life.If i were to sell my medical i would get much more. If i would accept the $400,000 then I am out on $340,000 that they would have paid me over my entire life time. I am reciveing $840.00 every two weeks. I have been saving all the settelment proposals that they have been offering me, and on some older proposals it looks like they were offering me more money.
I hurt my back at work and had two back surgeries and ended up with scare tissue in my spinal cord and have pain in both of my legs, lower back from my waist down to my toes, every single kind of pain you can imagine is present in my legs and feet.
my lawyer would take about $50,000 so i get about $350,000
I hope this is easyer to understand right know i am in alot of pain so its hard to explain. Has any one here in this fourm been rated permanent 100% disabled?
 
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#7
does not sound right.....
are you really refering to a C&R of just the indemnity portion of your case?
that's very, very, rare when there is already an existing PD award.
why would they negotiate a buyout of only half the case? all the risk is in the medical.
unless you are giving up a big discount (and the judge would never approve that anyway) what's in it for them? other then the computer cutting one less check a week?
Have you discussed a commutation with your atty? it's a non-negotiable computation that offers the injured the highest value for their future PD benefits. you will have to show financial hardship.
Reminder :
........Each state has their own comp system; POST YOUR STATE to get accurate information. Use the search feature to find information from similar questions.
THANKS FOR POSTING.
 
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#8
well from what i understand the insurance is going to pay another medical company to take care of my needs so they will save money on the medical and also if i live another 37 years they would save over $345,000 ,belive me the insurance will save money I dont know what C&R is but on my proposal they are calling it total annuity,I am calling it a cash out but that is not a leagal term.
 
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#9
i think i see now. somekind of strange structured settlement arrangement.
it's is a type of compromise and release lumpsum buyout whereby the comp carrier purchases an annuity from a third party. It's called a structured settlement. the carrier gets to close it's case and you get regular payments.
But i've never heard of one that jsut for your medical bills. Most just cut one check each month to the worker and everything comes out of that. so they've found third party that's agreed to pay AL your future medical treatment (even unexpected surgeries and hospitalizations) so don't need a Medicare set aside? what happens if that payor goes out of business?
Reminder :
........Each state has their own comp system; POST YOUR STATE to get accurate information. Use the search feature to find information from similar questions.
THANKS FOR POSTING.
 
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#10
1171, My medical would be handled by a custodial medical agreement services. CMS approved medicare set asides.so there will money set aside for my future medical needs.The issue is the total annuity.The total amount of money they are offering me.so if i am getting $1680 a month for life,what would be a fair lump sum payment. If i live to be 75 year old, they would have to pay me over
$700,000, in payments.This is my issue, what do you think is fair for cash up front?
 
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