Agenda

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County Attorney's Report 10. 1.

BCC Regular Meeting

Action

Meeting Date:	05/16/2019
Issue: Approval of Proposed Settlement of Workers' Compensation Claims Brought by Former Employee Donna Balsan
From:	CHARLES PEPPLER
Department:	County Attorney's Office
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Approval of Proposed Settlement of Workers' Compensation Claims Brought by Former Employee Donna Balsan.

That the Board approve a proposed settlement agreement in the sum of $17,500.00. The proposed settlement would constitute a complete resolution of all outstanding Workers' Compensation claims including medical benefits, indemnity benefits, attorney's fees and costs brought by Donna Balsan. The County would be responsible for payment of the settlement in full.

BACKGROUND:

Donna Balsan is a 67-year-old female who was employed by the Board of County Commissioners or the Sheriff for over thirty years as a Food Service Assistant. At the time of her accident, she was employed by the Sheriff in the County Jail. On August 14, 1996, Ms. Balsan was moving a large mixing bowl when she sustained an injury to her low back with symptoms radiating into her left leg and left foot. The accident was determined to be compensable and benefits were provided accordingly.

Medical treatment ensued. Ms. Balsan underwent an MRI scan of her lumbar spine which revealed a posterior disc herniation at the L5-S1 level among other findings. A neurosurgeon recommended that a left-sided L5-S1 laminectomy be performed. She underwent this surgery in November 1996. However, Ms. Balsan experienced a worsening of her left foot symptoms. She was referred for evaluation for pain management. After an MRI, a second laminectomy and discectomy procedure was performed in June 1998. She was found to have reached maximum medical improvement (MMI) and was given an 11% permanent impairment rating.

Ms. Balsan has continued with her pain management treatment in addition to surgical intervention for the left foot and ankle. In August of 2016, her physician, Dr. Erik Nilssen, who had performed the surgery on her foot, determined that she had reached MMI with no permanent impairment or restrictions resulting from the left foot injury.

In June of 2017, Ms. Balsan retired from her employment with the County. She is a recipient of Social Security Retirement benefits and a Medicare beneficiary. She is currently under the care of an orthopedic surgeon and a pain management specialist. Given Ms. Balsan's status as a Medicare beneficiary, a Medicare Set-Aside Report was obtained with projected medical expenditures of $12,949.00 over the course of her life expectancy. The County's exposure for medical expenses slightly exceeds the Medicare set-aside as the Medicare set-aside takes only into account Medicare-covered treatment and supplies. Because of Ms. Balsan's lengthy post-accident work history and recent retirement, medical expenditures would be the most likely cause of significant exposure to the County.

The parties and their respective counsel negotiated a provisional settlement agreement releasing the County as well as PGSC from future liability for Workers' Compensation benefits in exchange for a lump sum payment of $17,500.00. Our retained attorney, Brian T. Hanley, has recommended settlement for this sum. As part of the settlement, Ms. Balsan would assume responsibility for any outstanding liens and would execute a general release in which she waives any other potential claims against the Board.

BUDGETARY IMPACT:

The appropriate reserves from Internal Service, 501 Fund have been set to fund the self-insured retention portion of the settlement.

LEGAL CONSIDERATIONS/SIGN-OFF:

Mr. Hanley will prepare the settlement documents.

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

N/A

Attachments
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