Court denies attempt led by Ohio to stop opioid trial
National Legal News
A federal appeals court has denied an effort led by Ohio's attorney general to stop a bellwether trial over the opioid crisis from starting this month in Cleveland.
The 6th Circuit U.S. Court of Appeals ruled Thursday that Ohio didn't object when lawsuits filed by Summit and Cuyahoga (ky-uh-HOH'-guh) counties were included in what has become a sprawling case involving around 2,600 local governments and other entities.
The attempt by state attorneys general was led by Ohio's Dave Yost. They argued in August that states have the sole authority to pursue claims against drug companies on behalf of their citizens.
But a three-judge panel based in Cincinnati noted that preparations are far along for the first federal opioid crisis trial, scheduled to start Oct. 21.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.