Permanent Partial Disability 

Permanent Partial Disability (PPD) is a monetary benefit paid when an injured worker has reached Maximum Medical Improvement (MMI) but has not been returned to their pre-injury medical status. In these cases the authorized treating health care provider will determine if there is a permanent impairment as defined by the American Medical Association Guides to the Evaluation of Permanent Impairment.

• MMI is reached when a condition is stable and unlikely to change substantially in the next year. Although over time there may be some change, further deterioration or change is not expected.

PPD is paid for a specific number of weeks, based on the body part injured. These benefits are not a wage replacement benefit, and will be a percentage of the compensation rate.

• The compensation rate is obtained by finding the pre-injury average weekly wage (AWW) and multiplying it by sixty-six and two-thirds percent. However, the benefit level cannot be higher than 100% of the State Average Weekly Wage, determined each year by the state Department of Labor, nor can it be less than $36.00 a week.
• AWW is calculated by adding the total pre tax wages paid to the worker during the 26 weeks preceding the injury. If 26 weeks of wages are not available then the average weekly wage is based on the total amount of wages earned during the term of employment, and dividing by the total number of week employed.
• The number of weeks of PPD benefits paid is completely dependent on the body part injured, and can range from 7 weeks for a injury to the 4th finger at the distal joint, to 150 weeks for a injury to the knee, to 500 weeks for a back injury.
• EXAMPLE: Bob injured his knee while working. Surgery was required to repair a meniscus tear. After MMI a 3% impairment was assigned to the knee by the authorized treating physician. For the 3% impairment rating Bob will receive 3% of his compensation rate of $333.33, for 150 weeks or ($1,500.00 total).

In some cases when an injured worker has been unable to return to work making pre-injury wages, additional benefits are added based on the injured worker’s age, education and other considerations.

Generally PPD benefits are paid bi-weekly. However, a lump sum of PPD benefits is allowed in 2 cases:

1. After the injured worker has reached MMI, a partial lump sum may be received for the sole purpose of paying debts that accumulated during the disability period (period TTD was paid).
2. A worker may elect to receive a lump sum if they have return to work for at least 6 months making at least 80% of their pre-injury AWW. If this type of lump sum is received the worker is not entitled to any additional monetary benefits, even if their condition worsens at a later date. Additionally the insured is allowed to take a present day discount in cases of a lump sum for return to work.

Any lump sum payment requires the completion of paperwork and the approval of a Workers' Compensation Judge.