In Colorado’s workers’ compensation system, a medical professional assigns a percentage reflecting the permanent impact of a work-related injury or illness on an individual’s ability to perform everyday activities. This assessment, based on the American Medical Association (AMA) Guides to the Evaluation of Permanent Impairment, translates the severity of lasting functional limitations into a quantifiable metric. For instance, a 10% evaluation of the upper extremity might reflect reduced grip strength or range of motion after a hand injury.
This evaluation plays a crucial role in determining the benefits an injured worker receives. It helps calculate the permanent partial disability (PPD) award, which compensates for the long-term effects of the injury on earning capacity and quality of life. Establishing a clear, standardized system promotes fairness and ensures appropriate compensation for those whose ability to work has been permanently affected. The process has evolved alongside medical understanding and legal frameworks to reflect a more precise evaluation of impairment.
