What Is A Section 32 Workers’ Compensation Settlement?

New York Workers’ Compensation is a complicated administrative system that is difficult for claimants to navigate. A typical workers’ compensation claimant has to go through years of litigation, varied medical treatment, several workers’ compensation hearings, and insurance company examinations. This can leave a claimant depressed, angry and looking for closure.
In NY, only one type of settlement can give a claimant true closure… that is the Section 32 settlement.
What is a Section 32 settlement?

It is a final settlement that involves the claimant, the carrier and the Workers’ Compensation Board. Unlike other types of settlements, there is no appeal after a Section 32 settlement, and once such a settlement is approved (and the 10 day waiting period has expired) the case cannot be reopened.

When should a claimant take a Section 32 settlement? If the claimant has finished their medical treatment and would like to move on with their lives instead of continuing a legal battle, this may be a good option. It can also be a good choice for a claimant who needs a lump sum settlement for financial purposes.
There are also reasons that a claimant should think twice about taking such a settlement. If the claimant needs imminent medical treatment, such as surgery then a Section 32 settlement may not be the best settlement.
What a claimant is receiving Social Security Disability?

If a claimant is receiving Social Security Disability Benefits and will likely receive Medicare benefits within the next 36 months, then a portion of the settlement will go to the Medicare Set Aside. A Medicare Set Aside is an amount of money that a claimant has to set aside for treatment in a Health Care Trust Savings account. Medicare will then ask for an accounting of that money before the claimant can use their Medicare card for medical benefits. This money is taken out of the settlement and must be segregated from the claimant’s lump sum settlement.

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About the Author

Jason B. Kessler Attorney At Law is a full service law firm where attorneys with their extensive experience provide strong & Aggressive defense against Personal Injury cases.