Consolidated Lien Resolution Proposal to the Workers’ Compensation Community by Phil Boehm
Recently, Boehm & Associates was contacted by a company representing a carrier who was seeking to negotiate global resolution of outstanding lien claims in workers’ compensation cases and claims administered by the carrier.
Conceptually, we believe this fresh approach to a longstanding problem has merit and is worth a try. Although there are many cases and claims for which this approach is ill-suited (AOE/COE denied claims, for example), there are many claims where compensable workers' compensation liens for reasonable and necessary treatment in accepted claims (or claims that have closed by way of settlement) are simply ignored and left to accumulate interest and other potential penalties.
We suggest that the approach of global resolution could produce substantial savings in time and money, as well as other benefits, such as:
• reducing related attorney fees associated with individually litigating each lien claim in each case,
• minimizing exposure to accumulated interest pursuant to Labor Code Section 4603.2(b), as well as other potential penalties,
• freeing employer’s reserves,
• eliminating minor "loose ends", which prolong and add expense to claim administration, and
• expediting revenue to medical provider and health plan lien claimants.
The Board and ADR need not be the only venue for lien claim resolution. Boehm would be pleased to offer its offices to interested carriers and defendants to meet and to discuss informal (i.e. not formal lien consolidation at the WCAB) bulk resolution of lien claims, and, likewise, would be willing to meet at the offices of the claims administrators or attorneys at their convenience.
Boehm extends this suggestion and offer to the community at large in an effort to expedite the recoveries of its clients while reducing the burdens imposed on the WCAB.
We extend an invitation to start a dialogue with the workers' compensation community regarding this and other innovative solutions and recommendations to continue to reduce the burden of medical treatment lien claims on the system, and to realize genuine benefits for carriers, providers, and private health plans.