Release of Liability Procedures — Leaving Future Medical Liability Open

Neb. Rev. Stat. § 48-139(1)(a) lists the factors that determine whether a Lump Sum Settlement Application must be submitted to the Worker’s Compensation Court for review, or whether the parties may submit a Release of Liability (release).* 

A release cannot be filed if:

1. The employee is not represented by counsel;

2. The employee, at the time the settlement is executed, is eligible for Medicare, is a Medicare beneficiary, or has a reasonable expectation of becoming eligible for Medicare within 30 months after the date the settlement is executed. This subdivision (ii) is not applicable if the employee's right to receive future medical, surgical, and hospital services as provided in section 48-120 is specifically excluded from the settlement and Medicare has not paid medical, surgical, or hospital expenses or if Medicare has paid medical, surgical, or hospital expenses for which it claims it is entitled to reimbursement and Medicare has been reimbursed for such expenses at the time the settlement is executed;

3. Medical, surgical, or hospital expenses incurred for treatment of the injury have been paid by Medicaid and Medicaid will not be reimbursed as part of the settlement;

4. Medical, surgical, or hospital expenses incurred for treatment of the injury will not be fully paid as part of the settlement; or

5. The settlement seeks to commute amounts of compensation due to dependents of the employee.

This form may only be used if: 

1. The employee is not a Medicare beneficiary, eligible for Medicare, or has no reasonable expectation of becoming eligible for Medicare within thirty months after the settlement execution date and the employee's right to receive future medical, surgical, and hospital services as provided in section 48-120 is specifically excluded from the settlement.
   
   OR
   
   

2. The employee is a Medicare beneficiary,eligible for Medicare, or has no reasonable expectation of becoming eligible for Medicare within thirty months after the settlement execution date and the employee's right to receive future medical, surgical, and hospital services as provided in section 48-120 is specifically excluded from the settlement and 

Medicare has not paid medical, surgical, or hospital expenses; or if Medicare has paid medical, surgical, or hospital expenses for which it claims it is entitled to reimbursement and medicare has been reimbursed for such expenses at the time the settlement is executed.

Filing Fee:

• A $15.00 filing fee must be included with the release form. 

Other Filing Instructions:

• If the case has not previously been assigned a docket number, an Addendum 3 must be submitted with the release.

• Section 48-139(4) of the Act requires an order of dismissal to be entered on all cases in which a release of liability is filed. Also, Rule 47(J) requires the parties to file a receipt or satisfaction, in all such cases.

• The receipt or satisfaction, does not need to accompany the release of liability and can be filed after the employer has made payment to the employee.

• The receipt or satisfaction cannot be accepted via email. These filings may be efiled or submitted in paper format via regular mail (U.S. Postal Service), delivery (personal delivery, FedEx, UPS, etc.), or facsimile (FAX). The proposed order is the only document accepted via email attachment. Such attachment must be provided in either editable Microsoft Word format (*.doc or *.docx) or Rich-Text Format (*.rtf).

*Please Note: 

In all cases, the parties have the option to file a Lump Sum Settlement Application instead of a Release of Liability. A Lump Sum Settlement Application is filed with the court clerk, is reviewed by the court for compliance with the Workers’ Compensation Act (laws) and the Workers’ Compensation Court Rules of Procedure, and is either approved or disapproved/dismissed by a judge of the compensation court. In contrast, a Release of Liability is filed with the clerk of the court; however, neither a court staff attorney nor a judge reviews the Release of Liability.