Services > Subrogation

Subrogation is the process by which the BWC collects medical and compensation costs paid on behalf of an injured worker when a third party causes the injury. For subrogation to occur an injured worker must collect a judgment or settlement from the third party.

Details

Ohio statute gives a right of subrogation to the BWC, self insuring employers and certain employers who contract for the direct payment of medical services. This allows the BWC or self insuring employer the right to collect back the costs of the claim from the person or entity who caused the accident. Recoverable costs include all past, present, and estimated future payments of compensation, medical benefits, rehabilitation costs or death benefits paid to or on behalf of the claimant.

What claims can be subrogated

• Premises liability (slip and fall not on company property)
• Product liability ( machine malfunction)
• Medical malpractice
• Construction site accidents (caused by third party)
• Dog bites or animal attacks
• Automobile accidents

Referrals

Subrogation referrals are made in many ways. Any party to claim can make a referral to the subrogation department including the BWC itself, the managed care organization, attorneys, insurance companies or Hunter Consulting. A good referral should include

• Claimant name and date of injury
• Employer
• Third party name and insurance carrier
• Name of attorney representing claimant

The BWC is normally notified at the time the injured worker settles the third party claim. The subrogation department will then negotiate the settlement of the BWC lien with the injured worker or representative and the insurance company. Most claims will be resolved at this point, and the subrogation department will have a settlement release signed by the injured worker, and receive a check representing the amount of the BWC lien.

Claims which cannot successfully be resolved may be referred for mediation within BWC by the administrator’s designee. Claims which are not successfully mediated will be referred to the attorney general for collection.

Collection

The amount collected is credited to the employer’s risk at the time of recovery, and may result in the reduction of the employer’s premium. BWC’s right of recovery is tied to the injured worker’s third party claim and it may take two years or longer to collect.

Contact us for more information.