Court Denies Workers Comp Refunds

 

Local governments have setback in high-profile court case

  • The Ohio Supreme Court dismissed an attempt by more than 2,100 local governments to collect refunds from the Ohio Bureau of Workers Compensation.
  • The ruling is based on a 2020 decision in which the Court told the city of Cleveland that its attempt to recoup overpayments from the BWC belonged in the Court of Claims.
  • The case is the latest to reject refunds of premiums to public employers.
  • The BWC agreed to pay $420 million in refunds to private employers in 2014.

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Doctor fined $800,000, jailed for fraud

  • Robert Clay Smith, an Alexandria, Louisiana, physician, was sentenced to 48 months in prison, followed by three years of supervised release for wire and health care fraud.
  • He was also ordered to pay more than $800,000 to workers’ compensation insurers.
  • Smith conspired with a company to dispense pain creams and patches to his workers’ compensation patients, for which he received part of the profits.
  • The company acted as the billing agent for Smith, handling the paperwork and submitting the claims to both the U.S. Department of Labor workers’ compensation programs.

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Foundry explosion kills worker

  • An explosion at I. Schumann & Co., a foundry in Bedford, Ohio, killed one person and caused another dozen injuries.
  • Multiple burn victims were taken to a nearby hospital, one person had to be airlifted by a LifeFlight helicopter and another 46-year-old man died.
  • The explosion was so powerful, bricks from the building were thrown across the parking lot.
  • Investigators are unclear about what caused the explosion.

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Lawmakers want workers comp to pay for funerals

  • Boston lawmakers have filed a proposal that would increase the amount of reimbursement that companies and insurers would have to pay through workers comp for funeral costs.
  • The legislation would require insurers to pay funeral expenses of up to $25,000 or “10 times the average weekly wage, whichever is greater.”
  • Those expenses could include funeral and memorial costs, including funeral visitation services, flowers, casket, death notices, and headstones.
  • Current law only requires insurers to pay “reasonable expenses” for burial costs, “not exceeding eight times the average weekly wage” in the state.

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