Neel

Petitioner, Regina Neel, sustained a cumulative injury to her neck, back, right knee and both arms while employed by Lucky Stores. The Workers’ Compensation Appeals Board (Board) ruled that because a settlement between Neel and Lucky Stores allegedly discharged any prior compensation due or unknown claims which might arise, penalties for an unreasonable delay in the payment of pharmacy bills as agreed and pursuant to Labor Code section 5814 should only be assessed against future medical benefits. Neel petitions for review of the Board’s order.

We hold that the penalty should be applied against all compensable medical benefits. Accordingly, we annul the Board’s decision and remand for further proceedings.

Facts

Regina Neel sustained cumulative injury to her neck, back, right knee and both arms while employed as a retail clerk at Lucky Stores from 1978 to May 17, 1988. She received various medical treatments including surgery on her right knee and physical therapy.

On November 26, 1991, Neel and Lucky Stores stipulated her permanent disability was 31V2 percent, and that further medical treatment may be needed. Lucky Stores also agreed to adjust reasonable treatment…