Clifton Johnson, an employee of ArvinMeritor, Inc., claimed workers' compensation benefits for an occupational disease contracted during his employment. In 2003, the court ruled that Johnson was 100% disabled due to the disease and ordered the employer to pay workers' compensation benefits and related future medical expenses. Later, the employee claimed against third-party tortfeasors for the same disease and received a settlement higher than the benefits paid by the employer.
The employer and the employee reached a settlement in which the employer would pay a certain amount towards a Medicare set-aside trust (MSAT) to meet future medical expenses. The agreement did not cover a situation where the actual cost of the MSAT exceeded the estimated price. As it turned out, the real cost was significantly higher, creating an impasse. The court ruled against the employer's petition to put the burden of the additional cost on the employee. However, it affirmed that the employer could follow due process to suspend future medical expenses by proving how much of the employee's third-party recovery was attributable to future medical expenses.
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