Justices step back from Pa. court funding dispute

Headline Legal News

The Pennsylvania Supreme Court is declining a request by county governments that the justices force the General Assembly to provide more money for state courts and bring more uniformity to the court system.

The court ruled unanimously on Wednesday against the County Commissioners Association of Pennsylvania and 10 counties. The decision could end litigation over funding levels and uneven standards across the state that goes back a quarter century.

Chief Justice Ronald Castille's written opinion says there's been progress in recent years and the justices believe that "further enhancements" of the state courts should be a product of cooperation among the three branches of government.

An association spokesman says he's disappointed, while spokesmen for state House and Senate leaders didn't immediately respond to messages.

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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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