‘‘(A) PRESENT
VALUE
OF
LESS
THAN 
$250,000.—A workers’ compensation settlement 
agreement that has a present value, as deter-
mined under paragraph (3)(A), that is less than 
the greater of the following: 
‘‘(i) $250,000. 
‘‘(ii) The product (as published under 
paragraph (3)(B)) of $250,000 and the 
ratio of— 
‘‘(I) the national average wage 
index (as defined in section 209(k)(1) 
of the Social Security Act) for the cal-
endar year before the calendar year in 
which the workers’ compensation set-
tlement agreement became effective, 
to 
‘‘(II) the national average wage 
index for 2004, 
with such product, if not a multiple of 
$1,000, being rounded to the next higher 
multiple of $1,000. 
‘‘(B) COMPROMISE AGREEMENT.—A work-
ers’ compensation settlement agreement that is 
a compromise agreement (as defined in para-
graph (5)) that has a present value that is not 
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more than 20 percent of the present value of 
the total amount that could have been payable 
under the applicable workers’ compensation law 
or similar plan if the claim involved had not 
been subject to a compromise agreement. 
‘‘(C) LIKELY INELIGIBILITY OF WORKERS’ 
COMPENSATION CLAIMANT FOR MEDICARE BEN-
EFITS.—A workers’ compensation settlement 
agreement the claimant of which is not eligible 
for benefits under this title as of the effective 
date of the agreement and, under paragraph 
(4), is unlikely to become so eligible within 30 
months after such effective date. 
‘‘(D) NO FUTURE MEDICAL EXPENSES.—A 
workers’ compensation settlement agreement 
the claimant of which is not eligible for pay-
ment of medical expenses incurred after the ef-
fective date of such agreement that are avail-
able under the workers’ compensation law or 
plan of the jurisdiction in which such agree-
ment will be effective. 
‘‘(E) NO LIMITATION ON FUTURE MEDICAL 
EXPENSES.—A workers’ compensation settle-
ment agreement that does not limit or extin-
guish the right of the claimant involved to pay-
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ment of medical expenses incurred after the ef-
fective date of such agreement that are avail-
able under the workers’ compensation law or 
plan of the jurisdiction in which such agree-
ment will be effective. 
‘‘(3) DETERMINATION OF PRESENT VALUE OF 
WORKERS’ 
COMPENSATION
SETTLEMENT
AGREE-
MENT.— 
‘‘(A) BY
COST
OF
ANNUITY
TO
FUND 
AGREEMENT.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), for purposes of paragraphs (2)(A) and 
(2)(B) and subsection (m) and with re-
spect to a work-related injury or illness 
that is the subject of a workers’ compensa-
tion settlement agreement, the present 
value of the agreement is the sum of any 
of the following amounts that are used to 
fund the agreement: 
‘‘(I) The amount of any cash 
payment. 
‘‘(II) The amount of the pur-
chase cost of an annuity (and not the 
payout or the projected payout paid 
during the term of such annuity). 
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