Court allows hotly disputed discount contact lens price law
Headline Legal News
A federal appeals court ruling has cleared the way for discount contact lens retailers to drop prices while a legal battle is waged between the state of Utah and manufacturers who want to impose minimum prices on their products.
The decision handed down from the 10th Circuit Court of Appeals in Denver on Friday comes after three of the nation's largest contact lens manufacturers sued to halt a hotly contested law.
Supporters, including Utah-based discount seller 1-800 Contacts, say the newly enacted legislation bans price fixing for contact lenses. But opponents, including Alcon Laboratories, Johnson & Johnson and Bausch & Lomb, say it's a brazen overreach that allows discount sellers to violate interstate commerce regulations and skirt industry price standards.
Utah's attorney general has said the companies are wrongly driving up prices, and the law is a legitimate antitrust measure designed to enhance competition and help customers. Attorney General Sean Reyes' office didn't have a comment on the decision Friday.
The ruling allows the law to go into effect while a legal battle over the measure works its way through the courts. The appeals court did agree to fast-track the case and new briefs are due in the case later this month.
Donna Lorenson, a spokeswoman for Alcon, says the company is "extremely disappointed" and maintains the law violates interstate commerce rules.
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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.