Permanent Partial Disability Colorado Workers Comp – How Impairment Ratings Affect Your Case

Permanent partial disability (PPD) and impairment ratings are at the heart of every Colorado workers’ compensation settlement for lasting injuries. This guide is for Colorado employees who have suffered a work-related injury and want to understand how permanent partial disability (PPD) and impairment ratings affect their workers' compensation benefits. If you’re an injured Colorado worker, understanding these concepts is crucial for maximizing your workers’ comp benefits and ensuring you don’t leave money on the table. Insurance companies rely on these ratings to determine what you’re paid, and knowing how the system works can mean the difference between a fair settlement and walking away with far less than you deserve.

This comprehensive guide explains how Colorado’s workers’ compensation system calculates PPD benefits, how impairment ratings are assigned, and what steps you can take to protect your rights and maximize your recovery.

Quick Answer: How Colorado PPD & Impairment Ratings Impact Your Workers’ Comp Case

Permanent Partial Disability (PPD) benefits compensate a claimant for permanent loss of function or impairment to a particular body part. You only qualify for PPD benefits after your authorized treating physician declares you have reached Maximum Medical Improvement (MMI)—the point at which your condition is stable and not expected to improve further with treatment.

Once you reach MMI, your doctor assigns an impairment rating using the AMA Guides to the Evaluation of Permanent Impairment. This percentage rating is the single most important factor in determining how much you receive in PPD benefits. The impairment rating is then converted into dollars using Colorado statutory formulas and caps.

Insurance carriers often try to minimize your impairment rating through Independent Medical Exams (IME), which can dramatically reduce your settlement. However, workers who challenge unfair ratings through a Division Independent Medical Examination (DIME) see those ratings reversed approximately 60% of the time.

Key points for injured Colorado workers:

• PPD benefits are only available after you reach MMI.

• The impairment rating assigned by your doctor is critical in calculating your benefit amount.

• Insurance companies may try to lower your rating to reduce your payout.

• You have the right to challenge a low rating through a DIME.

• Several factors, including the impairment rating, injury severity, and your pre-injury wages, are considered in determining your benefits.

If you’ve been injured on the job in Pueblo, Otero, Fremont, Custer, Huerfano, Las Animas, Crowley County, or anywhere in Colorado, don’t accept a low impairment rating without understanding your options.

Call Johnston Law Firm, LLC at (719) 309-9484 or message us online for a free workers’ comp consultation.

What Is Permanent Partial Disability (PPD) in Colorado Workers’ Compensation?

Permanent Partial Disability (PPD) benefits compensate a claimant for permanent loss of function or impairment to a particular body part. PPD is a cash benefit paid to workers who suffer lasting impairment from a job-related injury or occupational illness, even if they can still work in some capacity. Unlike temporary disability benefits that replace lost wages while you heal, PPD compensates you for the permanent damage that remains after your condition stabilizes.

Scheduled vs. Whole Person (Unscheduled) Injuries

• Scheduled Injuries in Colorado involve specific body parts listed in a state-mandated schedule, such as arms, legs, hands, feet, eyes, ears, fingers, and toes.

• Whole Person (Unscheduled) Injuries affect complex systems like the spine, neck, hips, internal organs, brain, or involve multiple or complex conditions.

Colorado workers compensation benefits distinguish between several types of disability:

PPD can apply to both scheduled and whole person injuries. Colorado law under C.R.S. § 8-42-107 sets the formulas and maximums for permanent partial disability benefits. However, experienced attorneys can strategically challenge ratings, wage calculations, and cap applications to maximize recovery.

Johnston Law Firm, LLC in Pueblo routinely helps injured workers determine whether they are being correctly classified and whether the insurance carrier is underpaying their PPD. If you have questions about whether you qualify for permanent partial disability, call (719) 309-9484 to discuss your situation.

Transition: Now that you understand what PPD is and the difference between scheduled and whole person injuries, let’s look at when PPD is calculated and what triggers this process.

Reaching Maximum Medical Improvement (MMI) Before PPD Is Calculated

PPD is not determined until your authorized treating physician finds you have reached Maximum Medical Improvement (MMI)—the point when further significant improvement from medical treatment is not expected. This declaration triggers major changes in your workers comp claim.

Here’s how MMI works in Colorado:

• The ATP chosen under Colorado’s designated provider rules decides when you reach MMI.

• MMI can be declared prematurely if the doctor relies too heavily on the insurance company or cuts off treatment early.

• If you disagree with the MMI determination, you may request a Division Independent Medical Examination (DIME) within strict deadlines.

When the ATP places you at MMI, several things happen:

• Temporary total disability (TTD) and temporary partial disability benefits usually end.

• The doctor must address permanent work restrictions.

• The physician must determine if you need ongoing medical care.

• An impairment rating must be issued if there is any permanent loss of function.

The date of MMI also affects when PPD benefits start, the time limits to challenge medical opinions and ratings, and how your settlement value is calculated.

Steve Johnston has represented Colorado workers for years in disputes over premature MMI determinations, especially in injury-heavy industries throughout Pueblo, Otero, Fremont, Custer, Huerfano, Las Animas, and Crowley Counties.

Contact Johnston Law Firm at (719) 309-9484 or through our online contact form as soon as you receive an MMI letter so critical deadlines are not missed.

Transition: Once you reach MMI, the next step is for your doctor to assign an impairment rating, which is the foundation for your PPD benefits.

How Colorado Impairment Ratings Are Assigned

After MMI, the treating doctor evaluates whether you have any permanent impairment and assigns a percentage rating that becomes the backbone of your PPD calculation. This rating directly determines how much money you receive.

The Impairment Rating Process

• Colorado requires use of the American Medical Association (AMA) Guides to the Evaluation of Permanent Impairment (revised third edition, effective July 1, 1991).

• The ATP or a referred specialist measures loss of motion, strength, sensation, or function.

• For whole person ratings, different body systems may be combined into a single percentage using AMA tables.

The doctor determines impairment in two categories:

• Scheduled impairment applies to extremities, eyes, and ears. The percentage assigned translates to a portion of a fixed number of weeks of benefits.

• Whole person impairment applies to the back, neck, internal systems, and psychiatric conditions. This uses an age factor and 400-week base in Colorado’s formula.

The physician may rate:

• Physical impairment such as lumbar spine, shoulder, or knee damage.

• Neurological or brain injury impairment.

• Mental or behavioral impairment if causally related and recognized under statute.

Common Problems With Impairment Ratings

• Doctors often underestimate loss of motion or fail to account for pain impact.

• Insurance carriers may steer injured workers to physicians known for conservative ratings.

• Workers sometimes sign off on ratings without understanding how much money they’re leaving on the table.

• Multiple injured body parts may not all be rated or properly combined.

Johnston Law Firm frequently reviews impairment ratings for workers across Colorado and helps determine whether a DIME or second opinion is appropriate to correct an artificially low rating.

Transition: Next, we’ll look at how these ratings are used to calculate your actual PPD payments.

How PPD Payments Are Calculated & Paid (Including Lump Sums)

Once the impairment rating is set, Colorado uses formulas to determine the number of payable weeks and the weekly amount. Benefits can be paid over time or partially as a lump sum.

Key Calculation Concepts

• For scheduled injuries: Impairment Percentage × Schedule Weeks for Body Part × Applicable Weekly Rate = Total PPD

• For whole person injuries: Impairment Rating × Age Factor × 400 Weeks × TTD Rate = PPD Award (subject to statutory caps)

Scheduled Injury Calculation Example

1. Identify the scheduled body part and its maximum weeks (e.g., arm at shoulder = 312 weeks).

2. Multiply the impairment percentage by the scheduled weeks (e.g., 20% × 312 weeks = 62.4 weeks).

3. Multiply the result by your applicable weekly rate to determine the total PPD benefit.

Whole Person Injury Calculation Example

1. Determine your whole person impairment rating (e.g., 15%).

2. Find your age factor from the Colorado statutory table.

3. Multiply the impairment rating by the age factor, then by 400 weeks, and then by your TTD rate.

4. The result is your total PPD award, subject to statutory caps.

Important Numbers and Practices

• Maximum weekly TTD rates change annually. For newer injuries, the maximum benefit rate often exceeds $1,300 per week.

• The minimum lump sum payment under Colorado law is $150 per week.

• Workers can usually request up to $10,000 of PPD as a lump sum without a formal hearing.

• Larger lump sums or full settlements typically require a settlement agreement and may involve discounting future value.

Practical Considerations

Taking a lump sum can provide needed cash, but it may also close future rights, including medical benefits in some settlements. Insurance companies often present lump sum offers that undervalue the case, especially when:

• The impairment rating is disputed.

• Vocational impact is high.

• The worker has not fully explored DIME options.

An experienced Pueblo workers compensation attorney can:

• Recreate the benefit calculation using the correct wage, rating, age factor, and statutory tables.

• Identify mathematical errors and underpayments.

• Advise whether a partial or full lump sum settlement is in your best interest.

Call (719) 309-9484 before signing any PPD settlement paperwork.

Transition: Now that you know how PPD payments are calculated, let’s examine how Colorado law limits the total amount you can receive through statutory caps.

Colorado Caps on Permanent Partial Disability & Combined Benefits

Colorado law sets caps on how much an injured worker can receive in combined temporary disability and PPD benefits. These caps depend on your impairment rating and date of injury.

The amount of permanent partial disability benefits is calculated using the percentage of loss determined by the doctor after reaching MMI. The impairment rating is a key factor in calculating the amount of permanent disability benefits a worker is entitled to receive.

For injuries occurring in recent years, Colorado uses tiered caps:

Note: These amounts apply to injuries on or after January 1, 2006. More recent injuries may have higher indexed caps, and the Division of Workers’ Compensation updates these limits annually.

How the Caps Work

The combined cap functions by adding together all TTD, TPD, and PPD dollars:

• If that total hits the statutory cap for your rating level, further PPD payments may be reduced or eliminated.

• Future temporary disability may be offset by previously paid PPD if the combined cap has already been reached.

Example: A worker with a 2007 injury receives $52,000 in temporary total disability TTD over two years. At MMI, the doctor assigns a 20% whole person impairment. Under the $75,000 cap, this worker can only receive $23,000 in PPD—and any future temporary benefits create a 46-week offset period.

Why This Matters

Misunderstanding these caps can lead workers to:

• Accept small lump sum offers when more money is still available.

• Be persuaded they are “maxed out” when the insurer has miscalculated wages or misapplied the cap.

• Miss opportunities to challenge a low impairment rating that keeps them in the lower cap tier.

Johnston Law Firm reviews the date of injury, impairment rating, and payment history to determine the correct cap and whether the insurance company is cutting off benefits prematurely.

Have your benefit history and PPD cap evaluated by calling (719) 309-9484 or contacting us through our online form.

Transition: Understanding caps is essential, but it’s also important to know the difference between PPD and other types of disability benefits, such as Permanent Total Disability.

Permanent Total Disability (PTD) vs. PPD in Colorado

Some injuries are so severe that PPD is not enough. Colorado law may treat the worker as permanently and totally disabled, which provides wage benefits for life rather than a finite PPD award.

Key Differences: Permanent Partial Disability vs. Permanent Total Disability

PTD Benefits

Permanent total disability benefits are generally paid at the same rate as temporary total disability—two thirds of your average weekly wage. These benefits can last for life or as long as total disability persists.

PTD may be available even if you have some residual part-time capacity, if that capacity is not realistically employable given your age, education, training, and restrictions.

Why Insurers Fight PTD Claims

Insurers often fight permanent total disability PTD claims aggressively. They push for a PPD rating instead because PPD ends after a calculated number of weeks, while PTD can continue for life.

Johnston Law Firm evaluates whether an injury treated as “just PPD” should actually be considered PTD based on the worker’s real-world job prospects in communities like Pueblo, La Junta, Cañon City, Walsenburg, Trinidad, and surrounding areas.

Steve Johnston handles both PPD and PTD disputes and can advise whether your case is being undervalued by being treated as partial instead of total disability.

Transition: If you believe your impairment rating is too low or your injury is being misclassified, you have options to challenge the decision.

Challenging Low Impairment Ratings & Protecting Your Rights

Impairment ratings are not always fair. Workers frequently receive ratings that do not reflect their actual pain, functional limitation, or inability to do their old job.

Common Reasons Ratings Are Too Low

• Incomplete physical examination or rushed appointment at MMI.

• Doctor loyalty to the insurance carrier or employer.

• Failure to rate all injured body parts (for example, rating the knee but ignoring the back).

• Misuse of the AMA Guides or failure to combine multiple impairments properly.

• Reliance on insurance company IMEs rather than treating physician assessments.

Colorado Options for Challenging Ratings

• Division Independent Medical Examination (DIME): You can request a DIME within the filing deadline after receiving your impairment rating. The DIME physician’s opinion carries significant legal weight in Colorado—their rating is presumed correct unless overcome by clear and convincing evidence.

• Additional medical evidence: You may present evaluations from treating specialists or obtain second opinions to show higher impairment.

• Litigation: Rating disputes can be litigated before a workers compensation judge if necessary.

How Johnston Law Firm Helps

Steve Johnston and his team assist injured workers by:

• Reviewing the rating and medical records for errors or omissions.

• Advising whether a DIME is worth pursuing given your injury, wages, and possible upside.

• Preparing clients for examinations and gathering supportive evidence from treating specialists.

• Fighting insurer attempts to minimize your impairment through aggressive IMEs.

Don’t accept the first impairment rating or PPD offer without speaking to an attorney. Contact Johnston Law Firm online for a free review of your rating.

Transition: In addition to PPD, you may be entitled to other important workers’ compensation benefits.

Other Colorado Workers’ Comp Benefits Related to Permanent Disability

PPD is only one part of what an injured worker may be entitled to after a serious work-related injury. Other Colorado workers compensation benefits may also be available. Ongoing medical treatment, including doctor's appointments and related medical care, is covered as part of the medical benefits provided by Colorado workers' compensation.

When it comes to lost wage benefits, it's important to note that these benefits are not paid for the first three days of absence unless the disability lasts more than two weeks.

Ongoing Medical Treatment

• You may be entitled to maintenance care, prescriptions, injections, or surgery for work-related conditions even after MMI. The insurance carrier remains responsible for reasonable and necessary further treatment.

Vocational Rehabilitation

• In appropriate cases, Colorado provides job retraining services to help workers return to suitable employment.

Disfigurement Benefits

• Serious, permanent scarring on visible body parts may qualify for additional benefits subject to a statutory maximum amount that changes over time.

Mileage and Travel Reimbursement

• Authorized medical appointments qualify for mileage, parking, and sometimes lodging reimbursement for distant specialist visits.

Death Benefits

• If a worker dies due to a job-related injury or illness, dependents may be eligible for biweekly wage replacement and funeral medical expenses under Colorado law.

Related Claims

Workers may also have:

• Third-party personal injury claims separate from workers comp if a non-employer’s negligence contributed to the injury (for example, automobile crashes while on the job).

• Social Security Disability (SSD) claims if they are unable to work on a long-term basis.

Johnston Law Firm’s practice includes workers compensation, personal injury, automobile accidents, criminal law, estate planning, and social security law. This allows the firm to coordinate benefits and claims strategically for injured workers and their families.

Message us online to discuss the full picture of your legal options.

Transition: Before you can receive any workers’ compensation benefits, you must follow the correct claims process. Here’s how to get started.

How to File a Colorado Workers’ Compensation Claim

Employees must report their injury to their employer immediately after it occurs. The first step in filing a workers' compensation claim in Colorado is to notify your employer, who must then notify the workers compensation insurance carrier. Workers' compensation benefits are paid by the employer's workers' comp insurer. To receive benefits, a Workers' Compensation Claim (WC-15) must be filed with the Division of Workers' Compensation within two years of the injury.

Transition: Knowing when to seek legal help can make a significant difference in your case. Here’s when you should contact an attorney.

When to Talk With a Colorado Workers’ Compensation Attorney About PPD

The best time to talk with a lawyer is often before MMI or immediately after receiving an impairment rating—before costly mistakes happen.

When You Should Contact Johnston Law Firm

• You have been told you reached MMI but still feel significantly disabled or in pain.

• You received an impairment rating that seems low or does not include all injured areas.

• The insurer has offered a PPD lump sum or full settlement and is pushing you to sign quickly.

• Benefits have stopped or been reduced without clear explanation.

• There is confusion over how the combined cap affects your case.

• You have serious back, neck, brain, or multiple injuries and cannot return to prior work.

• Your claim has been denied or the insurance company disputes your injury.

• You are eligible for benefits but not receiving them.

Why Early Legal Involvement Matters

Getting help early can:

• Preserve your rights to challenge MMI and ratings within deadlines.

• Help select beneficial strategies such as requesting a DIME versus negotiating settlement.

• Prevent accidental waivers of important medical or lost wage benefits.

• Ensure accurate calculation of your pre-injury wages and benefit amounts.

Free Consultation Available

Johnston Law Firm, LLC offers free initial consultations for Colorado workers compensation issues. Most cases are handled on a contingency fee basis, meaning you do not pay attorney’s fees unless there is a recovery under the terms of the representation agreement.

Steve Johnston is based in Pueblo and regularly represents injured workers throughout Colorado, including Otero, Fremont, Custer, Huerfano, Las Animas, and Crowley Counties, as well as other communities across the state.

Call (719) 309-9484 right now or send us a message online to schedule a free, confidential review of your permanent partial disability and impairment rating issues.

Frequently Asked Questions About Colorado PPD

How is my PPD benefit calculated?
Permanent Partial Disability (PPD) benefits compensate a claimant for permanent loss of function or impairment to a particular body part. The amount of permanent partial disability benefits is calculated using the percentage of loss determined by the doctor after reaching MMI. For scheduled injuries, the benefit is based on a set number of weeks for the affected body part multiplied by your impairment percentage and weekly rate. For whole person injuries, the calculation uses your impairment rating, an age factor, 400 weeks, and your TTD rate.

What is the maximum I can receive?
For injuries occurring on or after January 1, 2006, the cap for combined temporary and permanent partial disability benefits is $75,000 if the impairment rating is 25% or less and $150,000 if the impairment rating is higher than 25%. These caps may be adjusted annually.

What is the difference between scheduled and whole person injuries?
Scheduled Injuries in Colorado involve specific body parts listed in a state-mandated schedule (such as arms, legs, hands, feet, eyes, ears, fingers, and toes). Whole Person (Unscheduled) Injuries affect complex systems like the spine, neck, hips, internal organs, or brain.

How long are PPD benefits paid?
Permanent Partial Disability benefits are typically paid for a specific number of weeks based on the impairment rating and the type of injury (scheduled or whole person).

Can I challenge my impairment rating?
Yes. If you believe your impairment rating is too low, you can request a Division Independent Medical Examination (DIME) or seek a second opinion. An attorney can help you determine the best strategy.

Do I lose my right to medical care if I accept a lump sum?
In some cases, accepting a lump sum settlement may close your right to future medical benefits. Always consult an attorney before agreeing to a settlement.

What if my injury affects multiple body parts?
All injured body parts should be rated and properly combined according to the AMA Guides. If you believe something was missed, consult an attorney.

About Johnston Law Firm, LLC – Pueblo Workers’ Comp & Injury Representation

Johnston Law Firm, LLC is a Pueblo-based law firm focused on protecting injured and disabled individuals throughout Colorado. Attorney Steve Johnston brings experience across multiple practice areas to serve clients facing complex legal challenges.

Six Key Practice Areas

This broad background allows the firm to handle your workers comp claim while also evaluating potential third-party personal injury or automobile accident suits. The firm can advise on long-term security through estate planning for clients with permanent impairment and coordinate workers compensation with Social Security Disability claims when work is no longer possible.

Serving Southern Colorado and Beyond

Johnston Law Firm represents clients across Colorado, including communities in Otero, Fremont, Custer, Huerfano, Las Animas, Crowley, and beyond. The firm understands the types of work and injuries common in these areas—from agricultural and manufacturing work to construction and heavy industry.

We encourage you to review the firm’s other practice-area pages, case results, and client testimonials to learn more about our approach to client service.

Contact Johnston Law Firm, LLC at (719) 309-9484 or message us online to discuss any Colorado work injury, PPD rating, or related legal concern. Your free consultation is waiting.