Financially 'struggling' gov had big legal bills

National News

Rod Blagojevich is the third-highest-paid governor in the country, but you wouldn't know it from conversations recorded by federal authorities.

He is heard on six weeks of recordings saying he is "struggling" financially, even though he makes $177,412 a year and his household income has averaged $344,000 annually for the past five years. He allegedly says he feels he is "stuck" as governor and imagines making as much as $300,000 as the head of a group pushing organized labor's agenda or a not-for-profit organization.

If he could land his wife a seat on one or more corporate boards and she "picks up another $150 grand or whatever," according to the recordings, it would help him "get through" his remaining two years as governor.

Federal authorities arrested Blagojevich on Tuesday on charges that include allegedly scheming to sell an appointment to the U.S. Senate for anything from an ambassadorship to a corporate-board post for his wife.

"I want to make money," Blagojevich is quoted by authorities as saying on a federal wiretap recording, discussing whether President-elect Barack Obama would name him to a Cabinet post in exchange for who he thought was Obama's choice to take his Senate seat.

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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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