Once you file a workers’ compensation claim, you will need to settle your case with the claims administrator. Assuming the administrator approves your request, you need to determine how to receive payment through settlement.
The California Department of Industrial Relations explains you have two options when settling your workers’ compensation claim.
Compromise and release
Compromise and release or C&R involves payment in a lump sum. You get one payment of all benefits due to you. Lost wage benefits in the agreed-upon amount usually come in a lump sum, and your medical benefits, including any estimated future expenses, come in one lump sum.
It is important to note that once the administrator makes the payment, he or she will no longer pay any medical bills. You will have to budget the money to pay for your expenses.
Stipulations with request for award
Stipulations with request for award or stips is when you come to an agreed-upon settlement and payment is on a weekly basis for lost wages. For your medical benefits, payment is on an as-needed basis for whatever your needs may be. This may be a better option if you are unsure of what your medical needs may be in the future or if you worry about having to budget out your medical spending based on a lump sum payment.
Remember that a settlement only occurs when you and the claims administrator can come to a compromise on what you will receive. If you cannot reach an agreement with the administrator, then your case will need to go before a workers’ compensation judge.