Detailed Answer
In Oklahoma, if you receive workers’ compensation benefits and later pursue a personal injury claim against a third party, the employer’s insurer has a statutory right to reimbursement. Under 85A O.S. § 86, the insurer can assert a lien for all compensation and medical benefits paid. To protect its lien, the insurer must file a written notice of claim with the court or the parties before the case concludes. Without proper notice, the insurer risks forfeiting its subrogation rights.
When you negotiate a settlement or obtain a judgment, you typically allocate specific portions of the recovery to damages such as medical expenses, lost wages, and pain and suffering. The insurer’s lien attaches to the portion of the settlement representing medical and wage-loss damages. After the settlement, the insurer may demand payment up to the total benefits it paid, reducing your net recovery by that amount. If the settlement does not cover the full lien, you may negotiate with the insurer for a reduced payoff or structured payments.
It is crucial to coordinate with your attorney to draft settlement documents that reserve the workers’ compensation lien. Properly structured agreements often include clauses that designate the insurer’s payment and clarify how attorney fees and costs are allocated. Failure to address the lien in the settlement can expose you to later claims by the insurer for reimbursement.
Helpful Hints
- Notify the workers’ compensation insurer early to confirm the lien amount.
- Work with your attorney to allocate settlement funds clearly to satisfy the lien.
- Include lien release language in your settlement agreement to avoid future disputes.
- Negotiate with the insurer if the settlement cannot cover the full lien.
- Keep detailed records of all compensation and medical benefits paid.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For advice regarding your specific situation, consult a qualified attorney.