Supreme Court Will Take up New Health Law Dispute
Recent Cases
The Supreme Court agreed Tuesday to referee another dispute over President Barack Obama's health care law, whether businesses can use religious objections to escape a requirement to cover birth control for employees.
The justices said they will take up an issue that has divided the lower courts in the face of roughly 40 lawsuits from for-profit companies asking to be spared from having to cover some or all forms of contraception.
The court will consider two cases. One involves Hobby Lobby Inc., an Oklahoma City-based arts and crafts chain with 13,000 full-time employees. Hobby Lobby won in the lower courts.
The other case is an appeal from Conestoga Wood Specialties Corp., a Pennsylvania company that employs 950 people in making wood cabinets. Lower courts rejected the company's claims.
The court said the cases will be combined for arguments, probably in late March. A decision should come by late June.
The cases center on a provision of the health care law that requires most employers that offer health insurance to their workers to provide a range of preventive health benefits, including contraception.
In both instances, the Christian families that own the companies say that insuring some forms of contraception violates their religious beliefs.
The key issue is whether profit-making corporations can assert religious beliefs under the 1993 Religious Freedom Restoration Act or the First Amendment provision guaranteeing Americans the right to believe and worship as they choose. Nearly four years ago, the justices expanded the concept of corporate "personhood," saying in the Citizens United case that corporations have the right to participate in the political process the same way that individuals do.
"The government has no business forcing citizens to choose between making a living and living free," said David Cortman of the Alliance Defending Freedom, the Christian public interest law firm that is representing Conestoga Wood at the Supreme Court.
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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.