It is not REQUIRED that you share that information with the insurance company. It may inhibit resolution of your case if you don't share. Defendant is entitled to know about any other conditions that may be affecting your industrial injury. Part of "discovery" is their looking for those other conditions. One way to find them is through SSA records if you've applied for SSDI or SSI. They don't trust you to tell them if you've applied so they want to look for themselves. For that they need a signed authorization.
If you want to close out your future medical care for more $$, we have to take into consideration the interests of Medi-Care. Medi-Care doesn't want you to settle out your medical care for an extra $10,000 and then turn to them to pay the bills. That's what the extra $10,000 was for! In order to take their interests into consideration, we need to know if you are on SSA or Medi-Care. We need for Medi-Care to approve an amount set aside from the WC settlement for those future medical bills. In order to do this, the WC carrier needs to communicate with Medi-Care and SSA. To do that, they need your authorization. No authorization ---> no communication with SSA ---> no settlement of the medical care.
Mr. Borah covered the question very well. He is a brilliant WC Attorney, and excellent legal counsel for the Injured. If I were not already an over-confident Defense Attorney in So Cal, I would definitely aspire to be Brett.
We give free general concepts to be helpful, but you should give ALL your facts to a licensed Attorney in your state before you RELY upon any legal advice.
As stated by Mr. Borah. Defense has a right to know and to even consider settlement by way of CnR an MSA is necessary and CMS approval of such. Medicare needs to cover their interests and that you dont get paid by WC for your future medical cost and then you try to get it taken care by Medicare.