Can an employer be held open-ended liability for future medical treatment?

California, United States of America


The following excerpt is from Barnes v. WCAB, 2 P.3d 1180, 23 Cal.4th 679, 97 Cal.Rptr.2d 638 (Cal. 2000):

The possibility of open-ended liability for medical treatment, though consistent with section 4600's mandate to employers to pay for medical treatment "to cure or relieve" the effects of an industrial injury, stands in contrast to the legislative concern, expressed in the Labor Code, for "certainty and finality in the determination of compensation benefit obligations." (Nickelsberg v. Workers' Comp. Appeals Bd. (1991) 54 Cal.3d 288, 299, 285 Cal. Rptr. 86, 814 P.2d 1328.) Thus, "`[i]t is important ... that the overall cost of [workers'] compensation insurance ... be ascertainable with reasonable certainty in order that business operations may be adjusted accordingly....'" (Ibid., first ellipsis and second brackets in original.)

The burden on employers of potentially open-ended liability for future medical treatment is somewhat ameliorated by time limits set forth in the Labor Code. Thus, an applicant must generally file an application for normal (medical or disability) benefits within one year of whichever of the following "results in the longest period: (a) the date of the injury; (b) the date of the last indemnity payment for temporary or permanent disability; or (c) the date of the last furnishing of any medical

[97 Cal.Rptr.2d 643]

or hospital benefits." (Sanchez v. Workers' Comp. Appeals Bd. (1990) 217 Cal.App.3d 346, 352, 266 Cal.Rptr. 21; 5405.) In addition, as discussed more fully below, section 5804 sets forth a five-year limitation period for "rescind[ing], altering], or amend[ing]" an award of compensation.

[97 Cal.Rptr.2d 643]

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