Wilchins Cosentino & Friend LLP
Law Promo News
Wilchins Cosentino & Friend LLP, formerly associated as Seegel Lipshutz & Wilchins, is committed to providing the best possible legal experience available. Wilchins Cosentino & Friend LLP is organized into six major practice areas – Private Client, Litigation, Family Law, Real Estate, Corporate and Financial Services Litigation. Within those practice areas, we offer a wide range of services that help our clients reach their business and personal goals.
Our attorneys are dedicated to providing sophisticated legal services to our clients promptly, efficiently and economically. We serve a wide spectrum of clients, including major corporations, financial institutions, individual entrepreneurs, closely held private companies, not-for-profit corporations, families and individuals. We strive to learn as much as possible about each client’s business and the industry in which each client operates.
Wellesley Office Park
20 William Street, Suite 130
Wellesley, MA 02481
Stephen N. Wilchins
Michael B. Cosentino
Sheara F. Friend
William A. DeVasher, Jr.
Sherman H. Starr, Jr.
John P. Feeney
Susan Donaldson Novins
Danielle Harris-Baker
Steven M. Schiavo
Laurin D. Johnson
Eric B. Brenman
James E. Grumbach
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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.