New Mexico Supreme court mediates clash on pandemic aid
National News
New Mexico’s Supreme Court is considering whether state legislators should have a greater say in the spending more than $1 billion in federal pandemic aid.
Arguments in the case were scheduled for Wednesday morning at the five-seat high court. A bipartisan list of state senators is challenging Gov. Michelle Lujan Grisham as she asserts authority over federal pandemic aid approved by President Joe Biden in March.
Lujan Grisham, a Democrat running for reelection in 2022, has used the relief funds to replenish the state unemployment insurance trust, underwrite millions of dollars in sweepstakes prizes for people who got vaccinated, prop up agriculture wages amid a shortage of chile pickers and provide incentives for the unemployed to return to work. Decisions still are pending on more than $1 billion in federal relief for New Mexico.
In a written court briefings, Lujan Grisham said a state Supreme Court decision nearly 50 years ago upheld the governor’s discretion over federal funding at universities and should hold true broadly regarding federal pandemic relief funds.
Republican Senate minority leader Gregory Baca of Belen and Democratic Sen. Jacob Candelaria of Albuquerque initiated efforts to challenge the governor’s spending authority.
Supportive legal briefs have been filed by state Treasurer Tim Eichenberg and four long-serving Democratic senators. Critics of the governor have said she has overstepped her constitutional authority, blocking the Legislature’s representation of diverse views on how to spend the pandemic relief money.
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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.