Today’s edition of WorkCompRecap features the release of an interesting new study from WCRI on how lump-sum settlement payments affect return to work. According to the new study, while some had believed that lump sum settlements would hurt return to work, the opposite was found to be true.
Based on a sample of over 2,000 workers who were injured in Michigan in 2004 and received lump-sum settlements, WCRI followed work experience over the following four years, and found that on average, more injured workers returned to work after receiving a lump-sum settlement than exited. Average employment in the sample increased from 25% at the time of the lump sum to 32% one year after a settlement. One noted exception were older workers, who experienced a decline in employment after a settlement.
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