A computational tool aids in estimating the present value of medical expenses an injured worker might incur throughout their lifetime due to a work-related injury in California. This calculation often forms the basis of a settlement where the injured worker agrees to forego future medical benefits in exchange for a lump-sum payment. For instance, if an individual’s knee injury requires ongoing physical therapy and potential surgery down the line, the calculator helps determine the financial equivalent of covering those future medical needs.
Such a calculation serves to streamline the workers’ compensation system by providing both employers/insurers and injured workers with a mechanism for closing claims definitively. This can offer cost savings for employers/insurers by capping potential medical expenses, while providing the injured worker with control over their medical care and finances. Historically, these settlements were less common, with injured workers remaining on the system for ongoing medical treatment. The use of these estimations has become more prevalent as a means of reaching mutually agreeable resolutions and reducing long-term administrative burdens.
