Workers' Comp Settlements
If you're negotiating a workers' compensation settlement in Arizona and your injury could realistically need treatment for years, the question of what happens to that future care doesn't answer itself. It depends entirely on which statute the settlement is built around — and that choice determines whether you're closing out one part of your claim or all of it.
Arizona law gives injured workers and carriers two distinct paths for resolving future medical exposure in a settlement: a full and final settlement that closes the entire claim, or a narrower agreement that resolves only ongoing supportive care for conditions already documented on the claim. They are not interchangeable, and the difference changes what a lump sum is actually buying. Neither becomes effective just because both sides sign — the Industrial Commission of Arizona has to approve it first.
Quick answer
In Arizona, future medical care on a workers' comp claim isn't automatically wrapped into a settlement — it has to be resolved through one of two specific statutory mechanisms, and the claim otherwise stays medically open. A.R.S. § 23-941.01 allows a "full and final" settlement that closes out the entire claim, including every future right to medical, surgical, and hospital treatment, in exchange for a lump sum, and is only available once the period of disability has ended. A.R.S. § 23-941.03 is narrower: it lets the carrier and worker settle only future "supportive medical maintenance benefits" tied to specific, already-identified conditions, while the rest of the claim can remain open.
Which route applies, or whether settling future medical care makes sense at all, depends on where the claim stands, what conditions are involved, and what's actually being offered in exchange for giving up the certainty of an open medical claim.
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Overview
Unless a claim is formally closed through one of these two mechanisms, an accepted Arizona workers' comp claim generally stays medically open — meaning the worker can keep seeking authorized treatment for the accepted condition without a settlement ever coming into play. The two-track approach for closing out future medical exposure through settlement was created by Senate Bill 1332 during the 2017 legislative session, which added the full and final settlement framework to Arizona's workers' compensation statutes.
Under A.R.S. § 23-941.01, a "full and final settlement" is one in which the employee waives any future entitlement to benefits on the claim — including future medical, surgical, and hospital care — along with any future right to change, rearrange, or reopen the claim. Before an ALJ can approve one, the carrier must first give the worker a summary of the medical, surgical, and hospital benefits it reasonably anticipates the worker will need going forward, along with the projected cost of that care and an explanation of how the carrier arrived at that figure. This settlement type is only available once the period of disability has closed.
A.R.S. § 23-941.03 covers a narrower situation: settling only the worker's "undisputed entitlement to supportive medical maintenance benefits" for conditions that are already known and specifically described in the agreement, rather than closing the claim outright. It's available once the temporary disability period has closed, requires a comparable disclosure from the carrier, and still requires Commission approval before it takes effect. What settling only supportive care under this section does or doesn't preserve with respect to future active or curative treatment for the same condition is a question of how the specific settlement language is written — worth reading closely, and worth having someone review, before assuming anything is or isn't still covered.
Both settlement types share two additional requirements. First, the parties must take reasonable steps to protect the interests of Medicare, Medicaid, the Indian Health Service, and the VA, which can include establishing a Medicare Set-Aside where necessary. Second, neither settlement is valid or enforceable until the Industrial Commission of Arizona approves it — an administrative law judge signs off only after confirming the statute's disclosure requirements were met and that the worker either had the opportunity to be represented by an attorney or knowingly waived it.
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Why legal help matters
A settlement that resolves future medical care is usually the largest single financial decision in an Arizona workers' comp claim, and it's not one that can be revisited once the Industrial Commission approves it. Before agreeing to either a full and final settlement under A.R.S. § 23-941.01 or a narrower supportive care settlement under A.R.S. § 23-941.03, it's worth having the carrier's disclosed cost projection, and the specific language describing what is and isn't being given up, reviewed by someone who isn't the party paying the claim.
This platform is an independent educational and referral resource, not a law firm, medical provider, or government agency, and nothing here is a substitute for reviewing your specific settlement documents with a qualified professional. If you're weighing a settlement offer that touches your future medical care, connecting with someone who can look at your actual disclosure statement and claim history is a reasonable next step before signing anything.
FAQ
No. Unless a settlement is specifically structured as a full and final settlement under A.R.S. § 23-941.01 or a supportive care settlement under A.R.S. § 23-941.03, a claim generally stays medically open and future treatment continues to be handled outside of any settlement.
A full and final settlement under A.R.S. § 23-941.01 closes the entire claim — all future medical, surgical, and hospital benefits, plus any right to reopen it. A supportive care settlement under A.R.S. § 23-941.03 is narrower: it resolves only the future supportive maintenance benefits for conditions already named in the agreement, without necessarily closing the rest of the claim.
Under A.R.S. § 23-941.01, a full and final settlement includes waiving the future right to change, rearrange, or reopen the claim. Once the Industrial Commission approves it, that waiver is generally treated as final.
Yes. Before either a full and final settlement or a supportive care settlement can be approved, the carrier is required to provide a summary of the future medical, surgical, and hospital benefits it reasonably anticipates, the projected cost, and an explanation of how that cost was determined.
Arizona law requires the parties to take reasonable steps to protect the interests of Medicare, Medicaid, the Indian Health Service, and the VA before a settlement resolving future medical care is approved, which can include setting up a Medicare Set-Aside. The specific dollar thresholds and review rules for Medicare Set-Asides are set at the federal level and change periodically, so it's worth confirming current requirements as part of the settlement process rather than relying on general assumptions.
It's not required, but Commission approval depends in part on confirming the worker either had the opportunity to be represented by an attorney or knowingly waived it. Given that a full and final settlement can't be reopened later, having the disclosed cost projection reviewed before signing is worth considering.
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