Hi everyone, new question about subrogation letter from workers comp....I understand what it means, my question is if I recover an award from a personal injury case re:car accident....do I have to pay back wc in it's entirety? Or, does that get added on in addition to any award? I find it hard to understand that wc is my "wages" and then any "award" (from personal injury) would have to "payback" those wages as if I never earned them?? Hope this makes sense, trying to understand....trying to figure this all out....thanks!
yes, that's what subrogation means.
what state are you in?
comp laws are different in each state.
in general, comp pays disability not wages (that's why you are not taxed on comp payments); you're right comp payments are not earned income.
If you win your personal injury case then it's assumed your empolyment wasn't the cause of your injury. If the employer has expended funds to treat you and your injuries then it's only fair that it should be made whole.
I'm in PA, thanks for info. I keep being told by doctors I am not ready to go back to work, but staying out on wc and then having to pay it all back seems scary to me......it's difficult to put the healing first when paying my bills is just as important.....thanks to all of you for the website even existing!
I am sooooooooo confused on this issue. What is subrogation, and why is it offered to some and not others? I received an impairment award and still have medical bills paid for, but yet I hear others being offered a settlement ( to end the case I guess ) and at what point would someone be offered this? I that accepting to not having all their medical paid for, impairment award etc?
sparkey Wrote:I am sooooooooo confused on this issue. What is subrogation, and why is it offered to some and not others? I received an impairment award and still have medical bills paid for, but yet I hear others being offered a settlement ( to end the case I guess ) and at what point would someone be offered this? I that accepting to not having all their medical paid for, impairment award etc?
Subrogation refers to an insurance company seeking reimbursement from the person or entity legally responsible for an accident after the insurer has paid out money on behalf of its insured.
For example, an employee is injured in a motor vehicle accident (work-related of course) The other driver is at fault. Workers' Compensation pays but then sues the other driver's insurance company (or has a lien on any settlement you make with the other insurance company) to get back the money they have paid out.
As far as being offered a settlement, each state is different, each insurance company is different and each claim is different. It also depends on the injuries, where the IW is in the recovery process, future medical and wage loss etc.
Thank you Kate. That was very informative. I appreciate the time you took to explain that to me.
An attorney can sometimes negotiate a lower subrogation rate, but it depends on the circumstances of the case, and as Kate said, each case is very different.
Most states allow the workers compensation carrier to subrogate from a third party claim when it settled. Subrogation to the workers comp carrier takes place before your attorney's fees. For a better understanding go to your states web site to the workers compensation link and call their local office for a better understanding as to what your state has proscribed by law the law of subrogation. The purpose of the subrogation laws are to allow the comp carriers to recove the money expended in effecting a valid claims for workers compenation benefits when the accident was caused outside of the employers's control, being the third party.
stiffnecked Wrote:If you win your personal injury case then it's assumed your empolyment wasn't the cause of your injury. If the employer has expended funds to treat you and your injuries then it's only fair that it should be made whole.
The recovery does not go to the employer it goes to the comp carrier.
If an employer pays weekly benefits and or medical bills the subrogation law does not apply to them. Any money the employer spends in effecting any claim for workers comp benefits before the employer has vilied the injury report to its comp carrier to whom it has paid premiums to adjust it employees' claims for workers compensation beneftis, is considered a gift and thereby not recoverable pursuant to the subrogation laws, concerning claims filed for workers compensation benefits.