Complete Labor Law Poster for $24.95
from www.LaborLawCenter.com, includes
State, Federal, & OSHA posting requirements

Announcement

Collapse
No announcement yet.

present day value Georgia

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • present day value Georgia

    What exactly does the term present day value mean when referring to a settlement? I am assuming it is the worth WC is putting on my life but I have been told a couple of different definitions and neither of them add up to the same thing. Any ideas? Thanks

  • #2
    It is the value today of a future amount.

    Put another way, it is how much you would have to invest today at x interest rate to achieve y dollars by a specific future date.

    For instance, if you invest $100 at 5% compounding interest, you would have $200 in about 14 years. The present value of $200 paid over 14 years is $100 at 5%.
    Any advice provided does not create an attorney-client relationship. This is a public forum and therefore no confidentiality is assured. Attorney Joel Grist does not enter into an attorney-client relationship without a written representation agreement.

    Comment


    • #3
      Thanks. I have been told that workers comp only pays out about 70% of the present day value of your case, which makes absolutely no sense to me. I always thought that they went by your disability rating and how much you would have made if you had continued working...

      Comment


      • #4
        Originally posted by genegene View Post
        I always thought that they went by your disability rating and how much you would have made if you had continued working...
        The disability rating and weekly income benefits are ordinarily paid over time. With a settlement, you are getting a lump sum that represents a future amount. No insurer is going to pay a lump sum settlement now unless they get a discount. Why not? Because whoever has the money now can invest it or otherwise use it to make more money. It only makes sense to pay a settlement if the discount is greater than or equal to the projected earnings (after costs) of keeping the money and paying out over time.

        Bottom line: If the insurer isn't getting a deal, they'll just pay what's required over time.

        I have never heard that 70% figure you mentioned.
        Any advice provided does not create an attorney-client relationship. This is a public forum and therefore no confidentiality is assured. Attorney Joel Grist does not enter into an attorney-client relationship without a written representation agreement.

        Comment


        • #5
          I have done a LOT of settlements, including negotiating one today, and I've never heard of the 70% figure.
          I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

          Comment


          • #6
            This was the first I had ever heard it either. Seems like every few weeks I get a call saying they(the attorney mostly) want to wrap it up and they give me a number and then come up with something like this 70% stuff to make the number go down....I really think they best route to go is wait for the surgeries and talk to them again....Lord knows we need the money and a lump sum would be nice though.
            I have heard from alot of people that says just taking a monthly check works out best...I don't know....with all these surgeries pending I don't want to rush into anything and regret it later...

            Comment


            • #7
              present day value

              Is the 70% present day value he mentioned too low or too high or not even applicable? I really appreciate the imput.
              To calculate present day value do you use what you are drawing with WC and multiply times the number of years till retirement? Disibility ratings? I was told that even though I had filled out everything for a catastrophic case that the papers weren't iled because the insurance was already treating it like a catastrophic case. Does that make any sense? I figured it would have to go through a board process like everything else does.

              Comment


              • #8
                present day value

                Now they are saying they meant to say 7% multiplied by my weekly WC check is what the present day value is. Does that make more sense?

                Comment


                • #9
                  Originally posted by genegene View Post
                  Now they are saying they meant to say 7% multiplied by my weekly WC check is what the present day value is. Does that make more sense?
                  .

                  I don't think that makes sense written that way, but think I can tell what's going on.

                  They appear to be using a 7% discount rate (or interest rate). Meaning the future value is reduced to a present value and 7% is the interest rate used.

                  Offer x 7% compounded for X years = future value
                  Any advice provided does not create an attorney-client relationship. This is a public forum and therefore no confidentiality is assured. Attorney Joel Grist does not enter into an attorney-client relationship without a written representation agreement.

                  Comment


                  • #10
                    Originally posted by GaOvertimeLawyer View Post
                    .

                    I don't think that makes sense written that way, but think I can tell what's going on.

                    They appear to be using a 7% discount rate (or interest rate). Meaning the future value is reduced to a present value and 7% is the interest rate used.

                    Offer x 7% compounded for X years = future value
                    That's usual for ga. settlements. The real variables in the equation that make a difference to you now are the number of future years and the items that go into the future value (TTD and PPD and non-medicare covered medical expenses)
                    Any advice provided does not create an attorney-client relationship. This is a public forum and therefore no confidentiality is assured. Attorney Joel Grist does not enter into an attorney-client relationship without a written representation agreement.

                    Comment


                    • #11
                      present day value

                      Basically, if I have 13 years till retirement age of 65 that is figured in with what I am drawing with WC x 7%, right? Thanks guys I think I am starting to understand all this a little better. Now if I could get a simple formula for set-asides I would be in business. I just do not understand why I would have to do a set-aside if I am already doing the surgeries. I can see it if I was just going to settle and try to get SSDI to do the surgeries that I got paid for but that is not what is going on. The WC attorney won't do open medicals for a year and a set-aside, says that would be like them paying twice for the same surgeries....That seems totally crazy to me...Everyone wants me (their lawyer and mine) wants me to stop the SSDI application...
                      They are saying that any settlement I would get would go into a set-aside for SSDI medicals if I don't stop the process.
                      I have already been turned down one time for SSDI and probably will the next time so I really do not see any point in them getting involved...Any simple explanations for this country bumpkin would be appreciated.

                      Comment


                      • #12
                        Hey Gene,

                        From reading your previous posts you have some very serious medical problems from your work injury. Protecting your right to future medical care has got to be your first priority. Be it through open medical with WC or from medicare. If you stop that SSDI application now how much do you figure you stand to loose when you will have to start over from scratch, 5 month elimination, difference of the 2/3 wc wage benefit and 80% of your previous wages, etc? Also consider that you have a 24 month waiting period from your established date of disability to be eligible for medicare.

                        SSA has no obligation to set your DOD any farther back than the date of your application. They can and sometimes do go up to a year but you have not guarantees of that. Do you have other medical coverage to use during this huge gap if you were to settle with WC today? How much time do you already have invested in these waiting periods? Are you willing to start over with your SSDI case? Also ask yourself if after these up comming surgeries & rehab if you think you will be able to reenter the job market and at what kind of wage. Further consider that Medicare will not only take care of your WC injuries, after the MSA is exhausted, but it also covers you for any non-WC care you need. Have you considered the value of this as you ponder taking a settlement offer?

                        On 05/24 you posted: I really think they best route to go is wait for the surgeries and talk to them again....Lord knows we need the money and a lump sum would be nice though.
                        I have heard from alot of people that says just taking a monthly check works out best...I don't know....with all these surgeries pending I don't want to rush into anything and regret it later...


                        Gene, if that is your gut feeling and you still feel that way you need to listen to the reason from within. A few thousand, or even a hundred thousand now no doubt sounds good, and would to most anyone, but at what cost down the road? So long as you are still receiving treatment and your condition is not stable, from your posts you are far from this stage, the IC can not force you to settle and close your case. Please listen to that little voice, yep the voice of reason, and forget any talk of settlement until you have reached MMI or at least until you have had this next round of surgeries. What position will you be in if say during the surgeries you have complications? How long is that settlement going to last if you are stuck with a mega hospital bill?

                        IMHO, the reason your attorney wants you to stop your pursuit of SSDI benefits and have the MSA is, he won't get a cut from what ever amount the MSA is. Also, IMHO, the IC attorneys must figure it will cost more for them to settle with a MSA. Otherwise they would have nothing to gain nothing to loose and not be suggesting you not pursue the SSDI claim.
                        Last edited by BnThrDnTht; 05-26-2007, 01:34 PM.

                        Comment


                        • #13
                          present day value

                          Thanks so much. It sounds to me like you have really done your homework. I have heard so many different things from my attorney that I have lost complete faith in his judgement, that is why I ask so many questions. I have used things I have learned on these forums to totally blow his mind when he is trying to get me to settle. He thinks I am a total country bumpkin that has no clue what is going on. I knew that he wouldn't get any of the MSA from reading other forums and asking questions. I am on the verge of firing him but i hate to have to start the process over again.
                          He wanted me to settle first with me paying for my own medicals and when I researched the total costs for the 2 surgeries it was not going to be enoguh to cover them must less his fees and any complications that might have occured...Come to find out he had found his numbers on the internet...He told me they wouldn't leave medicals open and now he says they will but I have to drop the SSDI.
                          I have no other coverage because they fired me when I had my 3rd surgery. I would love to be able to go back to work but it is still so far off to even consider even if I could find someone to hire me.
                          Sorry I am venting. You just brought up so many points that I had to respond. I know the smart thing to do is do the surgeries and then hope they are resonable. With the surgeries coming up it will make 9 alltogether and I am really tired of them cutting on me.

                          Comment


                          • #14
                            Originally posted by BnThrDnTht View Post
                            IMHO, the reason your attorney wants you to stop your pursuit of SSDI benefits and have the MSA is, he won't get a cut from what ever amount the MSA is. Also, IMHO, the IC attorneys must figure it will cost more for them to settle with a MSA. Otherwise they would have nothing to gain nothing to loose and not be suggesting you not pursue the SSDI claim.
                            Hey, you didn't hear this from me, but that's exactly how it sounds to me, too.

                            When Medicare started requiring a set-aside, it really changed the value of cases for attorneys - and that means the incentives changed and why some do some things changed. You've got to be careful now days.

                            This is coming down the pike for personal injury cases, too (mark my words) - and the incentives will change there too.
                            Any advice provided does not create an attorney-client relationship. This is a public forum and therefore no confidentiality is assured. Attorney Joel Grist does not enter into an attorney-client relationship without a written representation agreement.

                            Comment


                            • #15
                              [QUOTE=genegene;895404] Now if I could get a simple formula for set-asides I would be in business. I just do not understand why I would have to do a set-aside if I am already doing the surgeries. I can see it if I was just going to settle and try to get SSDI to do the surgeries that I got paid for but that is not what is going on. The WC attorney won't do open medicals for a year and a set-aside, says that would be like them paying twice for the same surgeries....That seems totally crazy to me...Everyone wants me (their lawyer and mine) wants me to stop the SSDI application...
                              They are saying that any settlement I would get would go into a set-aside for SSDI medicals if I don't stop the process.
                              QUOTE]


                              There is no such thing as a simple formula for a set aside. Any MSA must be approved by CMS and while there are guidelines, there just isn't anything set in stone that you can point to and say, "this is how much must be left in trust". Believe you me, it would make the whole process much easier for the other side of the desk as well if there were.

                              Open medicals and a MSA is not going to happen. There is no benefit for either side in a situation like that and it would likely not be approved.

                              You can find out more about MSAs here http://www.cms.hhs.gov/WorkersCompAg...wcsetaside.asp and SSDI offsets here http://www.jjcelderlaw.com/SSDIOffsetMSABull.htm
                              Last edited by ElleMD; 05-29-2007, 09:03 AM. Reason: wrong link
                              I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

                              Comment

                              The LaborLawTalk.com forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on LaborLawTalk.com are opinions and suggestions of members and is not a representation of the opinions of LaborLawTalk.com. LaborLawTalk.com does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.
                              Working...
                              X