An employee and his employer's workers compensation
insurance company may choose to close out a case.
This is usually done with a one-time, lump sum payment to
the employee. In return, the employee gives up the
right to the payment of any other benefits, including
payment of medical bills.
Such a settlement (called a Stipulation) must be
approved by a workers compensation commissioner.
If the employee is on Medicare, or is likely to go on
Medicare in the near future, the workers
compensation settlement usually must set aside some money
for future medical bills and must also be approved by the
federal agency that handles Medicare if the settlement is
for more than a certain amount.
If the employee is receiving Social Security Disability,
or likely to receive it in the near future, the
workers compensation settlement may result in reduced
Social Security Disability payments. Sometimes this
may be avoided if the settlement agreement contains
An insurance company usually will not close out a
workers compensation case if the employee is still working
for the same employer.
It is possible to close out a workers compensation
case but still have the insurance company pay for future
medical bills. However, this is not very common.
It is possible to settle just some of the issues in
a workers compensation case through an agreement
called a Stipulation-To-Date that leaves the rest
of the case open.
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