For a scenario with a 3rd party recovery of 150k, attorney fees 42k, costs 8k, WC lien 35k, what is the net recovery to the IW?

For a scenario with a 3rd party recovery of 150k, attorney fees 42k, costs 8k, WC lien 35k, what is the net recovery to the IW?

• A. 65k
• B. 70k
• C. 75k
• D. 60k

Answer: (B)

When a third-party recovery is obtained in a workers’ comp case, the money is distributed in a specific order: first the workers’ compensation lien (the employer/insurer’s subrogation claim) is paid, then the attorney’s fees and costs, and the remaining amount goes to the injured worker. The lien has priority, so it must be satisfied before the worker receives funds. The attorney’s fees and costs are paid out of the remaining third-party recovery. In this scenario: - Third-party recovery: 150,000 - WC lien to reimburse: 35,000 - After paying the lien: 115,000 remains - Attorney fees: 42,000 - Costs: 8,000 - Total deductions for fees and costs: 50,000 Net recovery to the injured worker = 115,000 − 50,000 = 65,000. So, the net amount the injured worker receives is 65,000.

When a third-party recovery is obtained in a workers’ comp case, the money is distributed in a specific order: first the workers’ compensation lien (the employer/insurer’s subrogation claim) is paid, then the attorney’s fees and costs, and the remaining amount goes to the injured worker. The lien has priority, so it must be satisfied before the worker receives funds. The attorney’s fees and costs are paid out of the remaining third-party recovery.

In this scenario:

• Third-party recovery: 150,000

• WC lien to reimburse: 35,000

• After paying the lien: 115,000 remains

• Attorney fees: 42,000

• Costs: 8,000

• Total deductions for fees and costs: 50,000

Net recovery to the injured worker = 115,000 − 50,000 = 65,000.

So, the net amount the injured worker receives is 65,000.