Ill. high court rejects intervention on state paychecks

Headline Legal News

The Illinois Supreme Court has denied a request by state officials to decide the issue of paying government workers during the budget crisis.

The high court made no comment Friday in rejecting the plea by Attorney General Lisa Madigan.

Madigan sought intervention because two separate courts ruled opposite ways last week on pay for 64,500 employees.

A Cook County judge ruled it would be illegal to pay most of them. But an appellate court reversed that decision Friday and sent it back for additional arguments.

A St. Clair County judge decreed it would violate the Constitution not to pay them.

State Comptroller Leslie Munger began paying workers this week.

A new fiscal year began July 1 but Gov. Bruce Rauner and legislative Democrats can't agree on a spending plan.

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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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