An Act relative to insurance settlements

194th Legislature (2025-2026) Introduced by Rita Mendes

Requires insurers to notify employers in writing about proposed lump-sum workers’ comp settlements, gives 30 days to object or consent, and adds an affidavit if no objection.

Accompanied a study order, see H5180

Overview

H 3994, introduced by Representative Rita A. Mendes (D Brockton) on April 3, 2025, is an act that would alter how lump-sum settlements are processed in workers’ compensation cases under the Massachusetts Workers’ Compensation Act (Chapter 152). The bill focuses on the notification and consent process for lump-sum settlements and requires an insurer to file an accompanying affidavit. It is currently in the legislative process with a reporting date extended in 2025 and a noted hearing in June 2025.

What the bill would change

Amends Paragraph (1) of Section 48 of Chapter 152 (as appearing in the 2022 Official Edition) by adding three sentences after the first sentence:

The employer must be notified in writing of the lump-sum payment proposed by the insurer.
The employer has 30 days to consent in writing or object in writing to the lump-sum agreement.
If, after 30 days, the employer has not objected or consented in writing, the employer’s consent is not required.

Adds a requirement for an affidavit to accompany the lump-sum agreement papers, stating:

The employer was notified of the proposed lump-sum agreement.
No written objection has been received from the employer.
30 days have elapsed since the date of mailing the notice to the employer.

Who is affected

Employers covered under Massachusetts workers’ compensation law (Chapter 152).

Insurers processing workers’ compensation lump-sum settlements.

Attorneys and representatives handling workers’ compensation settlements who rely on consent mechanisms.

Potentially injured workers indirectly, depending on how settlements affect wage loss or medical benefits, though the primary focus is on employer notification and consent timing.

Procedural and timeline details

Status: House bill filed January 17, 2025; referred to the Committee on Labor and Workforce Development.

Legislative actions:

04/03/2025: Referred to committee (Labor and Workforce Development).
04/07/2025: Senate concurred.
06/12/2025: Hearing scheduled (06/18/2025, 1:00 PM–4:00 PM, in a designated hearing room).
09/08/2025: Reporting date extended to Wednesday, December 3, 2025.

Related bill: HD 3337 (the document notes HD 3337 as the related or replaces reference).

Potential impact and considerations

Streamlines and clarifies the consent process for lump-sum settlements by imposing a clear 30-day window for employer input and requiring an affidavit when the window elapses without objection.

Could reduce delays in settlement processing by providing a default assent mechanism after the 30-day period.

Increases insurer administrative duties by requiring documentation (the affidavit) attached to the lump-sum agreement.

Effects on dispute dynamics: employers retain a formal opportunity to object; absent objection, settlements proceed with presumed consent after 30 days.

Notes: The text provided reflects the specific amendment language added to the statute and does not alter other provisions of Chapter 152 beyond Section 48 as described.

Bill