When Does Workers Compensation Stop Paying Out?
Workers compensation benefits vary depending on the severity of the injury. In some cases, medical benefits will be paid out for medical bills alone if the employee can immediately go back to work. In other cases, benefits can be paid for a certain length of time while the employee is unable to work.
This all boils down to the type of benefits being paid.
Medical benefits under workers compensation help pay for medical bills such as doctor’s visits and surgery costs. These benefits are paid as they arise and so will end once the medical needs for the injury are complete. For example, say you slice your finger at work and need stitches. Workers compensation insurance can cover the cost of an ER visit and stitches. After that, any unrelated medical bills—such as regular checkups or prescription medication—will not be covered.
There are four main types of disabilities and the severity of the disability can affect your benefits. They include:
Partial temporary disability
Partial permanent disability
Total temporary disability
Total permanent disability
An employee with a temporary disability may receive workers compensation benefits (such as physical therapy) will lasty until the individual recovers from their temporary disability. On the other hand, a permanent disability could see benefits paid for years or even for the rest of the employees’ life, such as if the employee is permanently paralyzed due to a work accident.
Wage replacement can also vary depending on the circumstances as well as the employee’s original income. Typically, workers compensation benefits will be calculated as a portion of the employee’s original paycheck. The employee will then receive that amount at the same time as they would their normal paycheck. For example, if they were normally paid on a biweekly basis, their workers compensation wage replacement benefits would also occur on a biweekly basis.
This type of benefit is only for employees who are unable to come back to work or must limit their work after a workplace injury and will only last as long as the employee is unable to work.
Some workers compensation insurance policies have limits on how long this particular benefit will pay out. If an employee is unable to work for a year or more, they may lose coverage under workers compensation insurance.
Employees should ask their employers about the benefits available under their workers compensation policies, as not all policies are created equal.