In 2010 after the Republican Party took complete control of the legislature for the first time since 1898, changes to the system began. As death benefits and funeral expenses were being increased, along with an increase in wage loss benefits, current injured workers were told that new proposals would not affect their claims. True enough, but anyone who was injured after June 24, 2011 would see some fairly drastic changes in benefits:
- 500 Week Cap On Total Disability Benefits.
Absent extroardianry circumstances (such as a brain injury) disability benefits would stop after 500 weeks (9.6 years). Thus, for a 25-year-old severely injured person who did not meet one of the exceptions, total disability benefits would stop at age 34 or 35, even though this person could no longer obtain employment in the competitive market place and had been out of the workforce for nearly a decade. For these disabled and unemployable people, the future cost of the injury will be shifted away from the workers’ compensation insurance company to the U.S. taxpayer, through Social Security and Medicare. Before this change, as long as the employee was disabled and unemployed because of his injury, he would be entitled to lifetime disability and medical benefits related to the injury.
- Employer Gets Credit For Social Security Retirement BenefitsIf benefits are extended beyond 500 weeks, the employer can reduce workers’ compensation by 100% of Social Security retirement benefits. This change gives the insurance carrier a huge financial break at the expense of the elderly and disabled who have earned retirement income.
- Even Catastrophic Injury Benefits Can Be Terminated If a person is disabled from a workplace injury because of a spinal injury, brain injury, or serious burns to 33% of the body, then they can get lifetime disability benefits. However, if the employer can show that this individual can return to “suitable employment” then those benefits can be terminated or suspended.
- New Definition of Suitable Employment After Maximum Medical ImprovementIn the above context, suitable employment means employment that the employee is capable of performing, considering his pre-existing and injury-related physical and mental limitations, vocational skills, education and experience, and is located within a 50 mile radius of the employee’s residence at the time of injury or elsewhere if there was a legitimate reason for leaving. [Before leaving the Tarheel state, be sure to get approval that the move is legitimate. Otherwise, you may get a job offer that is within the 50 mile job radius.]
Part III will discuss further changes to the workers’ compensation system. Stay tuned.