Supreme Court to review Montana school choice program
U.S. Court News
The Supreme Court will consider reviving a Montana program that gives tax credits to people who donate to private-school scholarships. The state’s highest court had struck down the program because it violated the Montana constitution’s ban on state aid to religious organizations.
The justices say Friday that they will review the state court ruling, which Montana parents are challenging as a violation of their religious freedom under the U.S. Constitution.
The Montana Supreme Court ruled that the program giving tax credits of up to $150 for donations to organizations that give scholarships to private-school students amounts to indirect aid to schools controlled by churches.
The Republican-led Legislature passed the law in 2015 as an alternative to a school voucher program designed to give students who want to attend private schools the means to do so. Most private schools in Montana have religious affiliations, and more than 90 percent of the private schools that have signed up with scholarship organizations under the program are religious.
The state court ruling invalidated the entire program, for religious and secular schools alike. In urging the Supreme Court to reject the appeal, Montana said it can’t be compelled to offer a scholarship program for private education. The state told the justices that the Montana court decision did not single out students at religious schools because the state court ruling struck down the entire program.
Montana is one of 18 states that offer scholarship tax-credit programs, according to EdChoice, an organization that promotes school-choice programs. Tax credits are one of several ways states have created programs to boost private schools or defray their tuition costs, with others including vouchers, individual tax credits or deductions and education savings accounts.
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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.