Today's Workers' Compensation Benefits

Medical Benefits

These payments are for the treatment of an injured employee and account for almost 30% of the total workers compensation benefit payments. Most state statutes allow for unlimited medical benefits in terms of monetary amounts and the duration of payments. With the increasing cost of healthcare an increasing trend in some states is to enter into agreements with managed care organisations in an effort to contain costs through pre-negotiated discounts.

Disability Benefits

These are designed to replace the workers income or capacity to earn as a result of a compensable injury.

There are four distinct categories:

(i) Temporary Total Disability

Covers a worker who is temporarily unable to perform their work function while injured or recovering. Benefits are usually in the region of 2/3rds of weekly wages with a minimum and maximum dollar amount.

(ii) Permanent Total Disability

Covers a worker who is unable to perform their work function for the rest of their life. Benefits are usually expressed as a percentage of weekly wages with a minimum and maximum dollar amount.

(iii) Temporary Partial Disability

Covers a worker who temporarily can still do some work but cannot perform their usual work function. Benefits are normally designed to cover the difference between the amount being earned and what the worker would have earned had no injury taken place.

(iv) Permanent Partial Disability

Covers a worker who can still do some work but cannot perform their usual work function and is not expected to recover to the point that they can reassume their full duties.

Rehabilitation Benefits

These benefits are designed to cover medical and vocational rehabilitation for workers with severe injuries.

Death Benefits

These are paid if a worker is killed and consist of burial allowances and an income for spouse and child benefit normally expressed as a percentage of the deceased workers' weekly wages.