High court won't hear Nevada patient dumping case
Legal Events
The Supreme Court won't hear an appeal from Nevada over a lawsuit that claims the state wrongfully bused indigent psychiatric patients to San Francisco without paying the costs of their medical care.
The justices on Tuesday let stand a lower court decision that said California state courts have authority to hear the case challenging Nevada's discharge policies.
San Francisco is seeking $500,000 in reimbursement costs for treating 29 patients who were given vouchers for one-way bus tickets to California. It also wants an order barring Nevada from sending over any more patients.
A California Superior Court judge ruled that Nevada could be sued in California because it knew San Francisco would have to spend money on the patients.
Nevada claims the lawsuit interferes with its sovereign powers.
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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.