(University of Oregon, 2010-06) Todd, Brandy L., 1977-
Increasingly, workers' compensation (WC) insurers are turning to claim
disposition agreements (CDA) as a means of reducing costs. CDAs are agreements
between injured workers and insurers that close claims for a lump sum payment in
lieu of other payments to which workers may be entitled. Intuitively, CDA payment
amounts are expected to vary in response to changes in WC benefit levels. Models
for decision-making processes related to lump sum versus benefit streams suggest
the opposite. This thesis examines the relationship between CDA amounts and
permanent partial disability (PPD) using two models. The first model utilizes
individual claim information before and after a legislated benefit increase in the
state of Oregon. The second model examines aggregate claims and payments made
over a 16-year period from 1990 through 1995.
