Court: Some employers can refuse to offer free birth control

U.S. Court News

The Supreme Court ruled broadly Wednesday in favor of the religious rights of employers in two cases that could leave more than 70,000 women without free contraception and tens of thousands of people with no way to sue for job discrimination.

In both cases the court ruled 7-2, with two liberal justices joining conservatives in favor of the Trump administration and religious employers.

In the more prominent of the two cases, involving President Barack Obama’s health care overhaul, the justices greenlighted changes the Trump administration had sought. The administration announced in 2017 that it would allow more employers to opt out of providing the no-cost birth control coverage required under the law,  but lower courts had blocked the changes.

The ruling is a significant election-year win for President Donald Trump, who counts on heavy support from evangelicals and other Christian groups for votes and policy backing. It was also good news for the administration, which in recent weeks has seen headline-making Supreme Court decisions go against its positions.

In one of those earlier cases, the court  rejected Trump’s effort to end legal protections for 650,000 young immigrants. In another, the justices said a landmark civil rights law protects gay, lesbian and transgender people from discrimination in employment.

Another particularly important decision for Trump is ahead. The justices are expected to announce Thursday whether Congress and the Manhattan district attorney can see the president’s taxes and other financial records he has fought to keep private.

In its second big ruling on Wednesday, the court sided with two Catholic schools in California in a decision underscoring that certain employees of religious schools can’t sue for employment discrimination.

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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.