Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.
Detailed Answer
When an employee receives workers’ compensation benefits for a work-related injury, New Hampshire law grants the employer or its insurer a right to reimbursement from any subsequent personal injury settlement. RSA 281-A:42 (Reimbursement for Compensation Paid) requires the employer or its workers’ compensation insurer to be paid back out of the tort award. Follow these steps to verify and satisfy that lien:
1. Identify Potential Liens Early
• Review your workers’ compensation records to determine if benefits were paid for the same injury.
• Request a formal lien notice from the employer’s insurer. Under RSA 281-A:42, the insurer must notify you in writing of the total amount it seeks to recover.
2. Obtain a Detailed Payback Statement
• Ask the insurer for an itemized statement showing the total benefits paid, medical expenses, and allowable fees.
• Verify dates of benefit payments and ensure they correspond to the injury covered by the personal injury claim.
3. Calculate Interest and Fees
• Under RSA 281-A:42, interest accrues at 12% per annum on the amount due from the date of the last compensation payment.
• Confirm that the statement includes interest up to the anticipated settlement date.
4. Negotiate the Lien Amount
• Engage in good-faith negotiations with the insurer to clarify disputed charges or adjust interest.
• Offer to resolve the lien in a single lump-sum payment, which may allow for a reduction in interest or fees.
5. Draft a Lien Release Agreement
• Prepare a written agreement specifying the lien amount, payment terms, and release of the insurer’s claim upon full payment.
• Include language confirming that, once paid, the insurer waives any further reimbursement claims related to that injury.
6. Obtain Court Approval (If Necessary)
• If the lien interferes with distribution of a structured settlement or if a third party disputes the lien, file a motion for court approval.
• Provide the court with the lien statement, proposed release agreement, and any settlement documentation.
7. Disburse Funds and Secure Releases
• Coordinate with the settlement administrator or attorney to disburse the agreed-upon amount directly to the insurer.
• Obtain a signed release from the insurer confirming satisfaction of the lien.
8. Finalize the Personal Injury Settlement
• Ensure all lien releases are in place before distributing the remaining settlement proceeds to the injured party.
• Keep copies of the release and payment records for your file.
For more on the reimbursement requirement, see New Hampshire RSA 281-A:42: https://www.gencourt.state.nh.us/rsa/html/I/281-A/281-A-42.htm.
Helpful Hints
- Start lien verification early to avoid delays in settlement.
- Double-check benefit dates to match them with your personal injury claim timeline.
- Consider hiring an attorney experienced in workers’ compensation and tort law to negotiate complex liens.
- Keep all correspondence and calculations organized for audit trails.
- Watch for administrative deadlines under RSA 281-A:49 for dispute filings.