IIU’s Permanent Partial Disability Calculations Webinar 2/18/09

1. IIU’s Permanent Partial Disability Calculations Webinar 2/18/09 Homework Answer Slides

2. Permanent Partial DisabilityExercises Determine the award due, PPD language to use on the closing order, down payment and complete three months of payments on a payment schedule: 1. Loretta was injured on 8/30/04. Her claim was Closed on 11/19/08 with a Category 3 cervical impairment. Her DOI monthly time loss rate is $1250.50.

3. PPD Exercise 1 Answer PPD Description(s): Category 3 (WAC 296-20-240) Permanent cervical area impairments Amount of Award: $30,906.00 Current Monthly Time Loss Rate: $1250.50 x 1.15276 (7/1/08 cumulative COLA)= $1441.53 Date of Initial Payment/Closure: 11/19/08 Less Prior Disability(ies) or Reductions in PPD Award: 0 Down Payment: $9,698.49 Balance: $21,207.51

4. PPD Exercise 1 Answer Amount of Award: $ 30,906.00 Down Payment: $ 9,698.49 Balance: $ 21,207.51 Note: Schedule incomplete. Only three payments shown as per homework instructions

5. Permanent Partial DisabilityExercises Determine the award due, PPD language to use on the closing order, down payment and complete three months of payments on a payment schedule: 2. Harrison injured his right knee on 5/12/06. He became MMI and was rated for PPD on 7/3/08. The IME rating was 15% of the right lower extremity. He requested and you granted an advance on his PPD, paying him 25% of his award on 7/5/08. You are closing his claim as of 7/15/08, with AP concurrence. His DOI monthly time loss rate is $1735.66.

6. PPD Exercise 2 Answer PPD Description(s): 15% permanent impairment of the right leg above the knee joint with a short thigh stump Amount of Award: $14,270.70 ($95,137.97 x 15%) Current Monthly Time Loss Rate: $1,988.29 [$1,735.66 x 1.14555 (7/1/08 cumulative COLA)] Date of Initial Payment/Closure: 7/15/08 Less Prior Disability(ies) or Reductions in PPD Award: $3,567.68 (advance) Down Payment: $9,759.49 Balance: $943.53

7. PPD Exercise 2 Answer Amount of Award: $14,270.70 Less Advance: $3567.68 Down Payment: $9,759.49 Balance: $943.53

8. PPD Exercise 2 Answer Misconception exists that because the 1st payment is less than the time loss rate, you can pay the entire balance of $10,703.02 (the down payment and remaining balance) at closure instead of paying the down payment and creating a monthly payment schedule. Though the balance remaining after the down payment is less than the time loss rate, you still have to complete a schedule and pay the balance plus interest on the scheduled payment date.

9. Permanent Partial DisabilityExercises Determine the award due, PPD language to use on the closing order, down payment and complete three months of payments on a payment schedule: 3. Blake injured his right elbow on 9/12/04. His claim closed on 5/3/06 with a permanent partial impairment of the right arm as follows: 12% impairment of the arm at any point below the deltoid insertion to below the elbow joint at the insertion of the biceps tendon. On 8/15/07 his claim was reopened for further treatment and surgery. The claim is re-closed on 12/1/08. The AP has rated his impairment as follows: 32% impairment of the arm at any point below the deltoid insertion to below the elbow joint at the insertion of the biceps tendon. His DOI monthly time loss rate is $1110.10.

10. PPD Exercise 3 Answer PPD Description(s): 32% permanent impairment of the arm at any point below the deltoid insertion to below the elbow joint at the insertion of the biceps tendon less previous awards paid. Amount of Award: 32% less 12% = 20% $88,082.08 x 20% = $17,616.42 Current Monthly Time Loss Rate: $1,279.68 [$1,110.10 x 1.15276 (7/1/08 cumulative COLA)] Date of Initial Payment/Closure: 12/1/08 Down Payment: $9,698.49 Balance: $7,917.93

11. PPD Exercise 3 Answer Amount of Award: $ 17,616.42 Down Payment: $9,698.49 Balance: $7,917.93 Note: Schedule incomplete. Only three payments shown as per homework instructions

12. Permanent Partial DisabilityExercises Determine the award due, PPD language to use on the closing order, down payment and complete three months of payments on a payment schedule: 4. Brenda injured her right elbow on 9/12/04. Her claim closed on 12/1/08 with a permanent partial impairment of the right arm as follows: 32% impairment of the arm at any point below the deltoid insertion to below the elbow joint at the insertion of the biceps tendon. After the rating exam, you learned that Brenda had a prior workers’ comp claim with another employer prior to the 9/12/04 claim (DOI 3/15/02) and was awarded 12% impairment of the arm at the same level as your claim. The rating physician has confirmed he was not aware of the prior rating at the time of the closing exam and did not subtract the prior rating. At closure, you plan to ask for a reduction of the impairment rating. Her DOI monthly time loss rate is $1110.10.

13. PPD Exercise 4 Answer PPD Description(s): 32% permanent impairment of the arm at any point below the deltoid insertion to below the elbow joint at the insertion of the biceps tendon less pre-existing 12% impairment at the same level Amount of Award: 32% less 12% = 20% $88,082.08 x 20% = $17,616.42 Current Monthly Time Loss Rate: $1,279.68 [$1,110.10 x 1.15276 (7/1/08 cumulative COLA)] Date of Initial Payment/Closure: 12/1/08 Down Payment: $9,698.49 Balance: $7,917.93

14. PPD Exercise 4 Answer Amount of Award: $ 17,616.42 Down Payment: $9,698.49 Balance: $7,917.93 Note: Schedule incomplete. Only three payments shown as per homework instructions