In 2011, Washington state amended its workers’ compensation system to allow certain injured workers to resolve their claims through structured settlements, formally known as a Claims Resolution Settlement Agreement (CRSA).
The change made it easier for eligible workers to settle all or part of a workers’ compensation claim with Washington’s Department of Labor & Industries (L&I) or a self-insured employer. In many cases, CRSAs provide injured workers with more flexibility to plan their future, whether that means working, changing careers, or planning for retirement.
However, not everyone qualifies for a CRSA. And even for those who do, it’s critical to understand what you gain and what you give up before agreeing to a settlement. That’s where experienced guidance matters.
How Do Structured Settlements for Workers’ Compensation Claims in Washington Work?
A CRSA is a voluntary agreement between the injured worker, employer or self-insured employer, and L&I. When you accept a structured settlement, you agree to close your claim and receive your workers’ compensation settlement as a:
- Lump sum
- Series of fixed cash payments
- Combination of lump sum and periodic payments.
Once the agreement is final, your claim is closed, and most workers’ compensation benefits stop. However, you have 30 days to change your mind, meaning you can withdraw your consent. After the 30-day cooling-off period, the CRSA is final and cannot be appealed. In some cases, you can reopen the claim only for medical treatment, and if the terms of the structured settlement agreement allow for that.
All CRSAs must be reviewed and approved by the Board of Industrial Insurance Appeals (BIIA). Once BIIA signs off, you’ll start receiving payments within 14 days of the agreement becoming final.
Who Is Eligible for a Structured Settlement?
To qualify for a CRSA in Washington, you must:
- Have an accepted workers’ compensation claim that’s at least 180 days old
- Be at least 50 years old
- Have a claim under L&I or a self-insured employer
Finally, while all parties must agree to a CRSA, you are not required to accept a structured settlement. You can choose to stay in traditional L&I or pursue other benefits, like vocational retraining.
How Much Will My Structured Settlement Payments Be?
Early versions of the law required periodic payments that were between 25% and 150% of Washington’s average monthly wage. The one exception to this was the initial payment, which had to be up to six times the average wage.
In 2021, Washington State added the option of a lump-sum payout, allowing you to receive the entire settlement amount at once, giving injured workers, L&I, and self-insured employers more flexibility in how a CRSA is structured.
Workers’ Compensation Video
Why You Should Hire a Seattle Structured Settlement Lawyer
Opting for a structured settlement can make sense for many people. However, it’s not the right choice for everyone because what you gain may not be worth what you give up.
Can’t Access Additional Benefits
With the exception of some medical treatment, agreeing to a structured settlement means you’re waiving the right to future benefits like:
- Time-loss (wage replacement)
- Vocational retraining
- Permanent partial or total disability benefits
Once the settlement is approved and final, you won’t be able to pursue additional wage-loss or disability benefits you may have been entitled to if you used traditional L&I benefits.
Hard to Reopen the Claim
Some structured settlements are “held open” for future medical treatment, meaning the settlement may change if a doctor determines future medical conditions or disabilities are directly related to your workplace injury. Not holding your structured settlement open for medical treatment doesn’t mean you won’t be able to pursue additional compensation if you need to, but it can be more difficult to do so without proper documentation.
Reduces Other Benefits
Entering into a structured settlement can reduce other benefits you’re entitled to, like Medicare and Social Security. For example, if your structured settlement includes payments for future medical care, you may be required to “set aside” that money, so Medicare doesn’t pay for your treatment.
However, this set aside isn’t always required, and failing to correctly document which medical expenses are covered by your structured settlement could cause Medicare to deny your claims and not pay for your medical treatment.
Complex to Negotiate
The nuances of a structured settlement in Seattle are complex. Determining the figure that fairly compensates you for your injury must include ongoing medical treatment, account for inflation, and ensure you don’t run out of money — especially if you don’t go back to work. Add in the impact of outside factors, like Social Security and Medicare, and you’ll likely find yourself facing a complex negotiation that could leave you with less money than you’re entitled to.
Why Choose Walthew Law Firm
A CRSA works by closing your workers’ compensation claim in exchange for giving up most future benefits. Deciding if that trade-off makes sense and adequately compensates you for your present and future needs can be challenging without expert legal guidance.
The knowledgeable attorneys at Walthew Law Firm have extensive experience evaluating and negotiating CRSAs throughout Western Washington. Our team will help you:
- Understand the full range of benefits you’re entitled to
- Compare a CRSA to all your options and help you decide what’s right for your situation
- Negotiate terms that protect your financial future
- Navigate the BIIA approval process with confidence.
Contact Our Seattle Workers’ Compensation Structured Settlement Lawyers
Structured settlements can be the right choice for injured workers in Washington State. But ensuring you receive proper compensation for your present and future injuries isn’t simple. Hiring an experienced workers’ compensation structured settlement attorney can ensure you aren’t shortchanged.
Walthew Law Firm represents the hardworking residents of Seattle, Western Washington, and beyond. Our experienced workers’ compensation lawyers have extensive experience negotiating structured settlements that ensure you receive the compensation and future medical treatment you deserve while protecting your right to reopen the claim and receive additional benefits.
Contact Walthew Law Firm today and schedule a free, no-obligation consultation and learn how we can help you get the structured settlement agreement you deserve.
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