High court rejects quick review of health care law

Headline Legal News

The Supreme Court rejected a call Monday from Virginia's attorney general to depart from its usual practice and put review of the health care law on a fast track. Instead, judicial review of President Barack Obama's signature legislation will continue in federal appeals courts.

The justices turned down a request by Virginia Attorney General Ken Cuccinelli, a leading opponent of the law, to resolve questions about its constitutionality quickly. The Obama administration opposed Cuccinelli's plea.

Only rarely, in wartime or a constitutional crisis, does the court step into a legal fight before the issues are aired in appellate courts. Hearings already are scheduled in May and June in three appeals courts.

The case still could reach the high court in time for a decision by early summer 2012.

Cuccinelli said he asked for speedy review to end "crippling and costly uncertainty" about the law.

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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.

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