Settlement Payouts for Maryland Workers’ Comp Claims

Valuing Your Maryland Workers’ Compensation Case

There is no honest average workers’ compensation settlement that tells you what your case is worth. A sprained ankle that fully heals is not the same as a back injury requiring fusion surgery. A shoulder tear in a desk worker is not valued the same way as a shoulder tear in a carpenter. A knee injury with no surgery is not the same as a knee injury with permanent restrictions, injections, surgery, or a future knee replacement risk.

The value of your Maryland workers’ compensation claim usually depends on several factors:

• Your average weekly wage
• The body part or body parts injured
• How long you were temporarily disabled
• Whether you returned to work
• Whether you returned to the same job or a lower paying job
• Whether you need surgery, injections, therapy, or future medical care
• Whether you have reached maximum medical improvement
• Your permanent impairment rating
• Whether vocational rehabilitation is needed
• Whether the claim is contested
• Whether the settlement closes future medical benefits
• Whether you also have a third party personal injury claim

The insurance company looks at many of the same factors. But it looks at them through a different lens. It wants to discount future treatment, minimize permanent disability, reduce the average weekly wage, argue that symptoms are preexisting, and close the claim for less than the real risk is worth.

That is why settlement valuation is not just plugging numbers into a workers’ comp settlement calculator. A calculator can help with a rough estimate. It cannot tell you whether the insurance company is closing medical benefits too cheaply, whether your impairment rating is too low, or whether a third party case changes the entire value picture.

Temporary Disability Benefits

Injured workers are initially entitled to either temporary partial or temporary total disability benefits. The amount of benefits is based on a combination of the injured worker’s average weekly wage and the state average weekly wage. As of January 1, 2026, the Maryland Workers’ Compensation Commission lists the state average weekly wage at $1,537.00. The 2026 mileage reimbursement rate is 72.5 cents per mile.

• Temporary partial disability benefits are paid to injured workers who can still work but earn less because of the injury. These workers receive 50% of the difference between their pre injury and post injury average weekly wage, up to the statutory maximum.
• Temporary total disability benefits are paid to injured workers who cannot work because they are completely disabled from the work injury. These workers receive two thirds of their average weekly wage up to the statutory maximum.
• Vocational rehabilitation benefits may be available if you cannot return to your former job because of your injury. These benefits can include retraining or job placement, and wage benefits may continue at the temporary total disability rate during vocational rehabilitation.

If a temporary total disability lasts for 14 days or less, compensation may not be allowed for the first three days of the disability. This limitation does not apply if the disability lasts more than 14 days, or to medical benefits and funeral expenses.

For reopened claims, injured workers receive two thirds of their average weekly wage up to a maximum of the lesser of the state average weekly wage on the date the claim is reopened or 150% of the initial award. Any new award must also not be less than the original award.

Permanent Partial Disability Benefits

Temporary partial and total disability benefits end when an injured worker reaches maximum medical improvement. Maximum medical improvement, usually called MMI, essentially means that you have healed and improved as much as can be reasonably expected considering the current state of medical knowledge and technology.

After reaching MMI, injured workers who have not completely recovered are eligible for either permanent partial or permanent total disability benefits. Permanent partial disability benefits are based on the body part, the percentage loss of use, the number of weeks allowed by law, the average weekly wage, and the applicable statutory tier.

There are three tiers of permanent partial disability benefits:

• First tier: Awards for a period of less than 75 weeks. For events occurring on or after January 1, 2026, but before January 1, 2027, compensation is paid at one third of the employee’s average weekly wage, not to exceed $257.00.
• Second tier: Awards for a period equal to or greater than 75 weeks but less than 250 weeks. For events occurring on or after January 1, 2026, but before January 1, 2027, compensation is paid at two thirds of the employee’s average weekly wage, not to exceed $513.00.
• Third tier: Awards of 250 weeks or more, also known as serious disability benefits. For 2026 injuries, compensation is paid at two thirds of the employee’s average weekly wage, not to exceed $1,153.00. The total number of weeks awarded is also increased by one third, except that awards for disfigurement or mutilation may not be used to make up the 250 weeks.

This is why the impairment rating matters so much. A few percentage points can change the tier, the number of weeks, the weekly rate, and the settlement value.

Maryland Workers’ Comp Settlement Chart for Scheduled Injuries

This Maryland workers’ comp settlement chart shows how the law specifies the duration of many different permanent partial disabilities, often called scheduled injuries. The chart does not automatically tell you the settlement payout. It tells you the maximum number of weeks used in the statutory calculation.

What else you should know about this workers’ comp settlement chart:

• The permanent loss of use of a hand, arm, foot, leg, or eye is considered equivalent to the actual loss of any of these body parts.
• Compensation for partial vision loss is paid without regard to the effect that a correcting lens may have on the eye.
• An amputation at or above the wrist or ankle may be apportioned to the loss of the use of the arm or leg, but may not be less than the compensation for the loss or loss of use of a hand or foot. Amputation at or above the elbow is considered the loss of an arm. Amputation at or above the knee is considered the loss of a leg.
• Payouts less than 75 weeks for a thumb, any of the fingers, or great toe are paid at the second tier rate.
• For awards less than 75 weeks for a thumb, any of the fingers, or great toe, the Workers’ Compensation Commission may determine that the disability results in an industrial loss. In that case, the Commission may award additional weeks of compensation, not to exceed a total of 75.
• You do not see PTSD on this chart. Under Maryland law, PTSD must be directly caused by the victim’s employment leading to disablement, and the PTSD must be the result of the specific nature of the employment. Is this a tough hill to climb? It is.

All other permanent partial disabilities are considered unscheduled. In these other cases, the Workers’ Compensation Commission determines the percentage of impairment. The maximum number of weeks of compensation is 500.

Permanent Total Disability Benefits

Injured workers are permanently totally disabled if they can perform no service other than those that are so limited in quality, dependability, or quantity that a reasonably stable market for them does not exist. The loss of both arms, eyes, feet, hands, or legs creates a presumption of permanent total disability, absent conclusive proof to the contrary.

That presumption also applies to a combination of the loss of any two of the following: an arm, eye, foot, hand, and leg. Injured workers who are permanently and totally disabled are entitled to two-thirds of their average weekly wage, up to a maximum of 100% of the state average weekly wage. For 2026 injuries, that maximum is $1,537.00.

Permanent total disability claims are high value claims, but they are often hard fought. The insurer may argue that you can perform some work, that retraining is possible, that other medical conditions caused the inability to work, or that vocational evidence does not support total disability.

Medical Benefits

Injured workers are also entitled to medical benefits, which include the following:

• Medical, surgical, or other attendance or treatment.
• Hospital and nursing services.
• Medicine.
• Crutches and other apparatus.
• Artificial arms, feet, hands, legs, and other prosthetic appliances.

As the Workers’ Compensation Commission notes, the entitlement to these services may continue indefinitely or for whatever period is required by the nature of the accidental injury, compensable hernia, or occupational disease if there is evidence to establish that the need for these services is reasonable, necessary, and causally related to the accidental injury or occupational disease.

Medical benefits also include the obligation of the employer or its insurer to repair or replace an artificial eye, limb, tooth, or other prosthetic appliance or eyeglasses damaged or destroyed because of an accident during the course of employment.

Future medical benefits are often the hidden value in a workers’ compensation settlement. A claim with possible future surgery, injections, therapy, medication, or replacement equipment may be worth far more than the impairment rating alone suggests.

Pain and Suffering

Like most states, Maryland workers’ compensation law does not provide separate compensation for pain and suffering while an injured worker is recovering. That is one of the biggest differences between a workers’ compensation claim and a personal injury lawsuit.

But pain and suffering that continues after an injured worker reaches MMI can affect permanent disability ratings. So it is not always a matter of punching an injury into a settlement calculator for a payout amount. Continuing pain, weakness, loss of function, work restrictions, medication use, and future treatment can all affect the permanent disability analysis.

It is therefore important to be treated by a doctor who understands that continuing pain and functional loss should be included in any permanent disability determination.

• What is the difference between a comp claim and a tort injury claim? Short answer: very different payouts and very different fault requirements.

Present Value

You also need to calculate the present value of your case. Present value is the amount that your employer or its insurer should pay now for all of your expected future expenses and costs, medical and otherwise. It is a discounted amount because its investment will eventually yield the total of any agreed-upon settlement.

Assume that a 30-year-old worker earning $50,000 is injured. The injuries reduce the worker’s earning potential to $40,000. The injured worker also expected to retire at 62. Using these numbers, the injured worker has incurred a lifetime income loss of $320,000, which is $10,000 multiplied by 32 years of expected future work. The question is what amount of money must be paid now to produce $320,000 during the next 32 years. That is the present value of the case.

Determining the present value of your case involves many difficult calculations, including whether and by how much your future income has actually been reduced because of your injuries, your expected future medical costs, and even the future interest any settlement you receive is expected to earn.

Your employer and its insurer will try to minimize the first two calculations and maximize the third to reduce the present value of your case as much as possible. The attorneys at Miller & Zois can help ensure this does not happen, and that the present value of your case accurately and adequately reflects your expected future costs and needs.

Death Benefits

The sad truth is that some workers’ compensation cases are not brought by injured workers, but by their estates and dependents. Maryland workers’ compensation law provides benefits in cases where a worker dies on the job or dies from a compensable occupational disease.

• Death benefits are paid to the dependents of the deceased worker. The benefits are generally two thirds of the deceased worker’s average weekly wage, up to a maximum of 100% of the state average weekly wage.
• The deceased worker’s income is divided by the family income to determine the percent earned by the deceased. That number is then multiplied by the death benefit to determine the amount payable to all dependents.
• Death benefits are paid for at least five and up to twelve years. Death benefits end when the decedent would have turned 70, provided that they have been paid for at least five years. Despite these limitations, death benefits may continue if a dependent spouse or dependent child is incapable of self-support because of a mental or physical disability that preexisted the covered employee’s death.
• Death benefits generally end two years after a dependent spouse remarries.
• Death benefits generally continue until a dependent child is 18, and for up to five years thereafter if the dependent child is attending school full time.
• For 2026, dependents other than a dependent spouse or dependent child combined receive a maximum of $103,529.00 of the total death benefits paid.
• The maximum funeral benefit is $7,000 unless a greater amount is approved by the Commission.

Families should also consider whether a third party wrongful death claim exists. Workers’ compensation death benefits can help, but they may not be the only source of recovery if someone outside the employer caused the death.

Settling Your Workers’ Compensation Case

Once you have valued your workers’ compensation case, you can decide whether to settle. As we said in the introduction, our lawyers will advise you on the pros and cons, but the decision is yours. Settling a workers’ compensation case typically ends your right to receive additional benefits in exchange for a lump sum payment. Maryland law allows parties to settle workers’ compensation cases, subject to the approval of the Workers’ Compensation Commission.

The Commission provides forms for parties that want to settle a workers’ compensation case, including:

• Claimant’s Consent to Pay Attorney and Doctor Fees
• Settlement Worksheet
• Claimant’s Affidavit in Support of Settlement

Maryland law also specifies that when approved by the Commission, a final compromise and settlement agreement is binding on all parties to the agreement, including the claimant, employer, and insurer.

These are some of the most important factors you should consider before deciding whether to settle your case:

• Benefits already received. How much in benefits have you already received, and are you entitled to receive additional benefits?
• Medical benefits. What medical benefits have you already received, and what, if any, will you need in the future? You should strongly consider not settling your workers’ compensation case until you have at least reached MMI. But reaching MMI does not mean that you will not need future medical care for your injuries. Many injured workers who reach MMI are still significantly disabled.
• Work. Have you returned to work? If you have not, do you expect to be able to do so in the near future? Can you return to your previous profession, or will you instead have to retrain for a new career? Have you received or do you expect to need vocational rehabilitation services? The anticipated cost of these services, as well as living expenses while doing so, should be included in any settlement.
• Wages. If you are working, how does your current and predicted future salary and benefits package compare to what you earned and received before you were injured?
• Contested cases. Is your workers’ compensation case contested by your employer and its insurer? Settling a contested workers’ compensation case at least allows you to receive some payment, but that does not mean you should take a low settlement just because the insurer has made the case difficult.
• Fees. Attorney and doctor fees are paid from the settlement and must be handled in the settlement approval process.
• Third party claims. Do you have a claim against a third party for your injuries? Except in certain limited instances, workers’ compensation benefits are the exclusive remedy available to injured workers against their employers. But they can file a civil lawsuit against other parties responsible for their injuries. Employers and insurers are often entitled to be reimbursed from any award an injured worker receives from a third party. Settlement discussions may involve lien or reimbursement issues.
• Financial advisor. Depending on the amount of the settlement, you should strongly consider consulting with a financial advisor about how it can best be invested and managed.
• Net proceeds after death. Maryland law states that any portion of the settlement amount that has not been paid at the time of your death is an asset of your estate.
• Medicare Secondary Payer Act. The MSP Act is an important part of any decision to settle a workers’ compensation case if Medicare is involved or may become involved.

Medicare Set Aside Issues in Workers’ Compensation Settlements

The Medicare Secondary Payer Act can be an important part of any decision to settle a workers’ compensation case. The Settlement Worksheet provided by the Workers’ Compensation Commission asks a range of questions about whether the proposed settlement complies with the MSP Act. The Commission website also includes documents explaining the law.

The MSP Act makes Medicare a secondary payer in workers’ compensation cases. This means the cost of work-related injuries must first be paid by all other responsible parties, including the claimant, employer, insurer, and any third party responsible for the injury. A workers’ compensation Medicare set aside, often called a WCMSA, allocates part of a settlement to pay for future medical services related to the work injury before Medicare pays for those services.

Some settlements require formal CMS review and approval before the Commission will approve the settlement. Other settlements may not require formal CMS approval but still must consider Medicare’s interests. If a settlement does not properly protect Medicare, CMS can deny future medical care related to the injury, impose a different allocation, or seek recovery of payments.

Your attorney should know the current CMS review thresholds and reporting rules that apply to your case. Not complying with the MSP Act can jeopardize your settlement and create problems long after the settlement check is issued.

Stipulations

Stipulations are different from settlements. Stipulations do not end workers’ compensation cases or foreclose future benefits. They are simply an agreement in which the claimant, employer, and insurer agree about the degree to which the claimant is permanently partially disabled, as well as how much the claimant will receive, and for how long.

All this information is included on the Stipulation of Parties and Award of Compensation form that the parties file with and for consideration by the Workers’ Compensation Commission. But because stipulations involve disability determinations and benefits, they should always be reviewed by an attorney.

A stipulation may be a good path when the parties agree on permanency, but you do not want to close the entire claim. A full and final settlement is different because it can permanently end rights you may need later. Do not confuse the two.

Contact Miller & Zois About Settling Your Workers’ Compensation Claim

You need an experienced attorney to help you value your case and decide whether to settle. That is especially true since you must find the answers to these questions at a time when all you want to do is focus on your recovery. The attorneys at Miller & Zois can help you answer these questions so that you can concentrate on your recovery and also receive the largest possible settlement.

You need to focus on your recovery. But you are also concerned about the future. Can I return to work? What are my future medical needs? How much will all of this cost? What is my case worth? Should I settle, and if so, for how much?

Our lawyers can help you answer these questions. We can value your case, review the medical evidence, analyze your future risk, explain whether medical benefits are being closed, deal with Medicare set aside issues, and make sure you do not leave money or future treatment on the table.