Detailed Answer
Short answer: If you accept a “full and final” settlement and sign a release, you usually give up the right to recover additional money later for the same injury. That means future medical bills, lost wages, and ongoing pain and suffering are typically your responsibility unless the settlement specifically reserves funds for future care.
This answer explains what a full-and-final settlement typically does under Indiana practice, what options you have before you sign, and what happens if you already signed but still need treatment.
What a “full and final” settlement usually means
- Contractual release: Most full-and-final settlements require you to sign a release that says the insurer (or defendant) will pay an agreed sum and that you will not bring any further claims arising from the same incident.
- Scope: Releases can be broad (covering all past and future claims related to the incident) or narrow (limited to known bills or to claims through a particular date). The exact language controls what you give up.
- Finality: Once you sign a valid, unambiguous release, courts usually treat it as binding. Undoing a release is difficult and typically requires proof of fraud, coercion, mistake, incapacity, or that the release was unconscionable.
Options before signing
Before you accept any full-and-final offer, consider these steps:
- Delay signing until your treatment is complete or until you reach a medical plateau if possible. That gives a clearer picture of future care and costs.
- Ask for a structured settlement or future medical fund. You can negotiate to have part of the settlement set aside for anticipated ongoing care.
- Limit the release. Ask for language that releases only known claims incurred through the settlement date, or carve out future medical treatment tied to the injury.
- Get everything in writing. If the insurer promises to pay future treatment, include that promise in the settlement documents.
- Check liens and subrogation. Health insurers, Medicare/Medicaid, and medical providers may have subrogation or lien rights. Negotiate who will satisfy those obligations from the settlement proceeds.
- Talk to a lawyer. An attorney can evaluate whether the offer fairly covers your past and probable future costs and can draft or revise release language.
If you already signed a full-and-final release
- Limited remedies: You generally cannot make a new claim for the same injury after signing a proper release.
- Possible exceptions: Courts may set aside or limit a release if you can prove the release was obtained by fraud, duress, mutual mistake, lack of capacity, or if the release is ambiguous. These are high legal hurdles and require evidence.
- Subrogation and liens still apply: Signing a release does not eliminate the need to resolve medical liens or insurer subrogation claims. If those claims remain unpaid, you may need to address them even after settlement.
- Workers’ compensation and other systems: If other benefits apply (workers’ compensation, long-term disability), different rules could affect your rights. Consult counsel familiar with those areas.
Timing and statute of limitations
Even if you reject a settlement offer, you must be aware of filing deadlines. In Indiana, the statute of limitations for most personal injury actions is two years from the date of injury. See Indiana Code for timing rules. If you wait too long to file a lawsuit, the court can dismiss your case regardless of the strength of your claim. For general reference about time limits for personal injury suits in Indiana, see: Ind. Code § 34-11-2-4.
Practical scenarios and what to do
Scenario A — You still need more treatment and the insurer offers full-and-final:
- Do not sign right away. Request a reserve for future medicals or wait until your treatment plan completes.
- Obtain medical cost estimates from your providers and include them in negotiations.
Scenario B — You already signed and later need more care:
- Gather medical records showing the necessity of additional treatment that was not reasonably foreseeable at settlement time.
- Consult a lawyer immediately to evaluate whether there are grounds to challenge the release.
Medicare, Medicaid and private insurers
If Medicare or Medicaid has paid medical bills related to your injury, federal rules require that settlements be reviewed for proper repayment or a Medicare Set-Aside may be needed. Private health insurers often assert subrogation rights. Address these obligations before distributing settlement funds.
Summary
A full-and-final settlement typically bars future recovery for the covered injury. Before signing, try to: document future medical needs, negotiate a reserve or structured settlement, limit the release language, and get legal advice. If you signed and still need care, reversing the release is difficult and requires strong legal grounds.
Disclaimer: This article provides general information about Indiana practice and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Indiana attorney.
Helpful Hints
- Do not sign any release the same day you get an offer. Ask for time to review.
- Request a copy of the proposed release and have an attorney review it before signing.
- Get written estimates for future medical treatment from your treating providers.
- Ask the insurer to pay outstanding medical bills directly or to carve out funds to cover them.
- Confirm whether Medicare or Medicaid paid for any treatment and follow CMS rules for reporting settlements.
- Keep detailed records: treatment notes, bills, correspondence with the insurer, and photos of injuries.
- If the insurer pressures you, note the pressure in writing and consult counsel about potential bad-faith conduct.
- If you accept a settlement, obtain and keep copies of the signed release and all settlement paperwork.
- Act quickly if you believe a release was obtained improperly — evidence and timing matter for any challenge.