States ask US court to overturn health overhaul
National News
More than two dozen states challenging the health care overhaul urged a U.S. appeals court on Wednesday to strike down the Obama administration's landmark law, arguing it far exceeds the federal government's powers.
The motion, filed on behalf of 26 states, urges the 11th Circuit Court of Appeals in Atlanta to uphold a Florida federal judge's ruling that the overhaul's core requirement is unconstitutional. The judge, U.S. District Judge Roger Vinson, said Congress cannot require nearly all Americans to carry health insurance.
Allowing the law to go forward, the states argued in the 69-page filing, would set a troubling precedent that "would imperil individual liberty, render Congress's other enumerated powers superfluous, and allow Congress to usurp the general police power reserved to the states."
So far, three federal judges, all Democratic appointees, have upheld the law. Vinson and the Virginia judge, both Republicans appointees, ruled against it. It seems certain that the broad health care challenge will be resolved only by the nation's top court, and Vinson suggested in a March ruling that the "Supreme Court may eventually be split on this issue as well."
The filing comes about a month after the Justice Department formally appealed Vinson's ruling, arguing that Congress had the power to require most people to buy health insurance or face tax penalties because Congress has the authority to regulate interstate business.
The legal wrangling started when the states filed a lawsuit last year. Vinson agreed in a Jan. 31 ruling that said the entire health care overhaul passed by the then-Democratic-controlled Congress and signed by President Barack Obama is unconstitutional. It is considered the most sweeping ruling against the health care law.
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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.