Mississippi seeks to derail federal suits over mental health
National News
The U.S. Justice Department overreached in suing Mississippi over its mental health system, the state’s solicitor general has argued to a federal appeals court.
A Justice Department attorney countered that there’s ample precedent to show the department has the power to enforce the Americans with Disabilities Act.
A three-judge panel of the 5th U.S. Circuit Court of Appeals heard arguments Wednesday in New Orleans. The Northeast Mississippi Daily Journal reported that judges on the conservative court appeared receptive to limiting the Justice Department’s role.
A ruling against the department could ultimately push the issue to the U.S. Supreme Court in a case that could have nationwide implications.
The federal government issued a letter in 2011 saying Mississippi had done too little to provide mental health services outside mental hospitals. The Justice Department sued Mississippi in 2016.
U.S. District Judge Carlton Reeves ruled in 2019 that Mississippi had violated the ADA by having inadequate resources in communities to treat people with mental illnesses.
Evidence showed people were repeatedly admitted to state hospitals for lengthy stays, only to later return to the hospitals without long-term improvement.
Mississippi Solicitor General Scott Stewart — the same attorney who argued an abortion case before the U.S. Supreme Court that overturned Roe v. Wade — told the appeals panel Wednesday that since Reeves’ ruling, the state has improved its mental health system. Stewart said limiting the federal government’s ability to intervene is important because lawsuits can cost states thousands of dollars.
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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.