MMI means maximum medical improvement — the point where your condition has improved as much as it is expected to, even if you still have symptoms. This page explains terms only. It does not advise you to accept or reject any offer, and it is not legal advice — see the Disclaimer.
Settlement vs. award
A settlement is an agreement between you and the insurer, often approved by the IWCC, that resolves part or all of a claim. An award is a decision made by an arbitrator or the Commission after a hearing. Both can have different effects on future medical care, so read every document carefully before signing.
Open vs. closed future medical
Open medical generally means future medical care for the work injury may still be covered under the terms of the agreement or award. Closed medical generally means future medical care for that injury is no longer covered as part of that resolution. This distinction is important and can be hard to undo, so get it explained in writing before you agree to anything.
Before you decide
- Ask what is included and what is not, including future medical, wage benefits, and any other claims.
- Ask how the amount was calculated, and whether you have time to review it.
- Consider talking with a licensed Illinois workers’ compensation lawyer before signing — use Connect with a lawyer. No outcome is promised, and no fee percentage is stated on this site; a lawyer will discuss any fee directly with you.
Medicare set-asides: why a settlement may set money aside for future care
If a worker who receives, or expects to receive, Medicare settles a workers’ compensation claim, part of the settlement may be set aside for future medical care related to the injury. This is called a Medicare set-aside. The idea is that Medicare should not pay for care that the settlement was meant to cover.
A set-aside is usually handled by the parties with the help of a lawyer, and what is set aside depends on the worker’s future medical needs and on federal rules. The money in a set-aside is meant to be spent on injury-related care, and the spending may need to be reported.
The rules around Medicare set-asides are federal, and they are detailed. Do not agree to a set-aside, or to a settlement that includes one, without advice. Read How Is a Workers’ Compensation Settlement Calculated in Illinois? If a settlement is on the table, speak with a lawyer before you sign it.
Wage differential, explained in depth
A wage differential is a benefit for a worker who, because of the injury, can no longer earn as much as before, even after returning to work in a lighter job. It is meant to make up part of the difference between what the worker earned before the injury and what the worker can earn now.
A wage differential is different from PPD: PPD is about a lasting loss of use, and a wage differential is about a lasting loss of earning capacity. The two are decided differently, and a worker is usually paid under one or the other, not both, for the same injury.
The exact rules for a wage differential are set out in Section 8(d)(1) of the Act. Check the current rules, or get advice, before relying on any detail. Read Benefits Overview and TTD, TPD, PPD, PTD: what is the difference? If your earning capacity has changed, speak with a lawyer about your own situation.
Related: Benefits overview, Claim denied, FAQs. Verify current rules at the IWCC.
Verify against the IWCC: Settlement, award, and wage-differential rules depend on the facts of a case and the terms of the agreement or award. Check current guidance with the Illinois Workers’ Compensation Commission.
This page is general information only. It is not medical advice, not legal advice, and this site is not a law firm. See the Disclaimer.
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