Court orders some fixes in Texas foster care
Headline Legal News
A federal appeals court says Texas must make improvements to abuse investigations within its foster care system and make sure workers have manageable caseloads, but the court also struck down dozens of other measures ordered by a judge.
The 5th U.S. Circuit Court of Appeals issued the ruling Thursday in a years-long case focused on children in the state’s long-term care. U.S. District Judge Janis Graham Jack had ordered sweeping changes earlier this year. Jack’s order followed a December 2015 opinion in which she ruled the system unconstitutionally broken and said children labeled permanent wards of the state “almost uniformly leave state custody more damaged than when they entered.”
The appeals court judges said they understood Jack’s frustration with the state failing to fix problems and agreed that “remedial action is appropriate.”
But the judges said her order went “well beyond” what’s necessary for constitutional compliance.
So while the appeals court said Texas was “deliberately indifferent” to the risk of harm posed by high caseloads and ordered the Texas Department of Family and Protective Services to come up with guidelines for manageable caseloads, the judges nixed Jack’s instruction for all sexualized children — either aggressor or victim — to be placed in a single-child home.
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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.