Revises provisions governing payments for a permanent partial disability. (BDR 53-777)
The implementation of AB165 is anticipated to have significant effects on the state’s workers' compensation laws, potentially increasing the financial flexibility for injured workers. By enabling more claimants to choose lump sum payments, the bill aims to expedite the disbursement of benefits, allowing recipients to address immediate financial needs without waiting for installment payments. This change could also alter the landscape of how injuries and disabilities are compensated, leading to adjusted rates determined by insurers in compliance with the new allowances.
Assembly Bill 165, introduced by Assemblywoman Jauregui, seeks to amend existing provisions regarding the payment structure for claimants with permanent partial disabilities under Nevada's workers' compensation system. The bill allows claimants injured on or after July 1, 2017, whose disabilities do not exceed 30 percent, to elect to receive their compensation in a lump sum payment. This change stands in contrast to the prior provisions that limited lump sum elections largely to claimants with disabilities exceeding 30 percent.
Debate over AB165 has surfaced around concerns that the broader eligibility for lump sum payments could lead to misunderstandings or mismanagement of funds by claimants. Critics argue that claimants may not fully comprehend the long-term implications of accepting a lump sum, as it terminates their eligibility for ongoing compensation benefits. Additionally, there are worries that this may incentivize insurers to push for lump sum settlements over installment payments, potentially affecting the overall adequacy and accessibility of long-term benefits for injured workers.