Saturday, September 25, 2010

Minnesota Workers' Comp PPD % Rating: How Much Is It Worth?

Under Minnesota Workers’ compensation law, Permanent Partial Disability (PPD) benefits are payable for the permanent functional loss of use of the body based upon a disability schedule. Often, once an injured worker has reached Maximum Medical Improvement (MMI), his or her doctor will assign a permanency rating.

If the search statistics are any indication, folks are curious as to the dollar value associated with their permanency ratings.
In Minnesota, since 1984, Permanent Partial Disability (PPD) has been determined using the PPD schedules. Under the schedules, specific types of impairments to each body part are assigned a percentage rating. These ratings are meant to assign a permanent partial disability to the body as a whole based on the specific type of permanent impairment. This percentage is then multiplied times a dollar amount to determine the amount of the PPD benefits. A higher permanency rating is multiplied by a higher dollar amount. Here’s a look at the schedule that applies to injuries that occurred on or after October 1, 2000:

PPD % Amount 
0-5        $75,000
6-10       $80,000
11-15     $85,000
16-20     $90,000
21-25     $95,000
26-30     $100,000
31-35     $110,000
36-40     $120,000
41-45     $130,000
46-50     $140,000
51-55     $165,000
56-60     $190,000
61-65     $215,000
66-70     $240,000
71-75     $265,000
76-80     $315,000
81-85     $365,000
86-90     $415,000
91-95     $465,000
96-100   $515,000

The compensation schedule at the Minnesota Department of Labor and Industry website can be somewhat confusing for folks trying to figure this out on their own what the insurance company owes them. For example, I’ve had people inquire as to why the insurance company wasn’t going to pay $80,000.00 for their 10% PPD rating.
Reading the schedule this way makes it seem like PPD ratings between 6-10% result in a benefit of $80,000.00. Unfortunately, this is not the case. Ratings between 6-10% are multiplied by $80,0000.00 to determine the permanency benefit.
Here’s a couple examples of how this math works:
3% PPD (x) $75,000.00 = $2,250.00
5% PPD (x) $75,000.00 = $3,750.00
9% PPD (x) $80,000.00 = $7,200.00
16% PPD (x) $90,000.00 = $14,400.00
24% PPD (x) $95,000.00 = $22,800.00
36% PPD (x) $120,000.00 = $42,200.00
50% PPD (x) $140,000.00 = $70,000.00
75% PPD (x) $265,000.00 = $198,750.00
100% PPD (x) $515,000.00 = $515,000.00
Sometimes, determining permanency is relatively straightforward under the schedules. Other times, however, such as when the type of injury is not specifically addressed in the schedules, if there is disagreement as to the precise diagnosis, if there is a question as to whether the individual had a pre-existing condition, or where multiple body parts are injured, determining permanency may be more complex. As a rule, Minnesota workers’ compensation insurance companies adopt the lowest possible rating.
Our office frequently reviews files of injured workers who don’t think they have any workers’ compensation benefits available, only to discover that the work comp. insurer either did not pay PPD benefits, or underpaid those benefits.
For more information about Permanent Partial Disability (PPD) benefits in Minnesota, check out these previous posts:

MN Work Comp and Permanent Partial Disability (PPD) Benefits

Calculating Permanent Partial Disability (PPD): MN Work Comp

For a free, no-obligation consultation to learn more about Minnesota workers’ compensation benefits, call Meuser & Associates at 877-746-5680 or click here to send us an email to speak with one of our Minnesota workers’ compensation lawyers.
Related Posts with Thumbnails