Section 32 is permanent. Verify the math. Plan the MSA. Resolve the liens. Then decide.
What's happening
Settlement discussions are active. The carrier has made an offer (or is about to). The case may have been at MMI for a while; classification may already be in place. Defense counsel is preparing a §32 agreement that, once approved by a Workers' Compensation Law Judge, will close the case permanently. The negotiation window is the most consequential financial moment in the entire case — second only to the LWEC/SLU determination itself.
What comes next
- Verify the offer against mature value. Calculate present value of remaining capped indemnity (for non-schedule) or the SLU balance, plus reasonable future medical, plus value of avoided IME and litigation risk. First offers are typically below this number.
- Plan for the Medicare Set-Aside. If you are or will be Medicare-eligible during the projected future-medical period, an MSA is required. The MSA amount comes out of the settlement and must be set aside for future medical. CMS recently shifted policy on zero-dollar MSAs — get current.
- Resolve liens. Health insurance liens, Medicare/Medicaid liens, child support liens, attorney fees from related matters. Unresolved liens reduce net recovery and can create post-settlement headaches.
- Coordinate with pension and line-of-duty benefits. For public-sector workers, the §32 amount, pension benefit, and any §207-a / §207-c benefit interact. Settling WC without coordinating the others typically loses money.
- Review the agreement language carefully. Scope of release, finality language, MSA terms, payment terms, retained rights (medical only? indemnity only? both?). Once signed and approved, the agreement controls.
Common pitfalls at this stage
- Accepting the first offer. First-offer numbers are anchored on carrier reserves and negotiation strategy, not on case value. The room to move is meaningful.
- Ignoring future medical. If you settle indemnity but keep medical, the value calculation is different. If you settle both, the future-medical projection must be realistic — surgeries, periodic injections, pain management, rehab.
- Skipping the MSA analysis. A §32 closed without proper MSA can leave you personally responsible for future medical that Medicare won't cover. This is one of the most consequential errors at this stage.
- Not resolving liens before signing. Post-settlement lien disputes are difficult and reduce net recovery.
- Settling under suspended-benefits pressure. Carrier offers made during a benefits stop are leverage plays. Restore benefits first, then evaluate settlement from a position of strength.
Tools, FAQs, and pages relevant to this stage
When to call now
Before signing. A Section 32 closes the case permanently — the upside of getting it right is large and the downside of getting it wrong is permanent. Representation at settlement consistently produces materially better numbers.
Attorney Advertising — Educational Use Only. This page provides general information about New York workers' compensation. It is not legal advice and does not create an attorney-client relationship. Every case turns on its facts. For analysis of your matter, contact Levi directly.