California teachers call for week of budget protests
Ethics
Facing the threat of mass layoffs, larger class sizes and the elimination of myriad programs, thousands of California teachers are expected to take part in a weeklong series of rallies and sit-ins at the Capitol and throughout the state to protest possible spending cuts in the state budget.
The California Teachers Association, which is organizing the actions, is pressing Gov. Jerry Brown to back off his call for a special election and instead push Republican lawmakers to directly approve an extension of higher sales, income and vehicle taxes, which are due to expire at the end of June. Brown promised during his campaign last year that he would not raise taxes without going to the voters.
The rallies starting Monday are an escalation of efforts by the teachers association, which waited while Brown tried to negotiate a deal with Republicans to put his proposal before voters in June. Since that effort failed, the teachers are now delivering their message directly.
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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.