What is workers comp funding in California?
Workers comp is the insurance policy that all employers must carry within their state in order to remain in compliance with the law, California being no different than other states in this respect. The insurance that is put forth under workers comp laws stipulates that both the injured worker themselves and the employer agree to utilize the system in the case of a work related injury, so as to give both parties an equality that is not swayed by the ability to personally cover legal fees. The worker agrees to not pursue legal aspects outside of the system in exchange for the workers comp system to be the intermediary in the case, assuring a fair compensation if the worker was proven to be injured on the job and within certain stipulations. The workers comp process is a streamlined version of the traditional legal process, which assures that the case will not drag on for months or years. Workers compensation insurance must be maintained by all California businesses who have employees, so as to assure the fairness of the process.
California workers comp funding is the process by which a non-recourse loan is issued with regards to the qualified California worker, so as to cover medical bills or other specific expenses related to the case. The term “non-recourse” means that the worker does not have to pay the loan back to the issuer if the case is not decided in their favor, and therefore all the risk of the loan is on the part of the issuing organization. Typical California workers comp funding from a company like Med-Care Solutions involves the approval of specific treatments, surgeries and therapies to be performed by medical providers, the payment for such services being guaranteed by Med-Care Solutions and issued directly to the medical provider. This situation provides the medical treatment providers to be assured that they are not assuming risk by treating this particular patient, and there will be no default on the payments if the case is decided against the patient. Through removing the risk of default, patients are able to secure treatments and therapies in a timely manner, and without the potential of costs being required to be covered out of their own pocket.
The California workers comp funding process is typically initiated through the legal representation of the injured worker, after the case has been initiated. In some cases the funding options for a patient may be initiated through a medical provider themselves, if the patient is not being represented by a legal firm and they have sought treatment directly. Third party funding businesses like Med-Care Solutions enter into a legally binding arrangement with the other entities, ensuring that payment for the loans will be taken from the ultimate settlement, and not owed to be repaid if the settlement is not in the patient’s favor. This access to funding is crucial in many California workers comp cases, as the settlement itself is partially dictated by the amounts that treatment cost.
If you are a California worker who has been injured while on the job, an attorney representing a California workers comp case or a treatment provider who has been considering treatment for a worker injured on the job, contact Med-Care Solutions through our website or by phone today to discover the funding options that are available to you.