If WC were a family, RTW would be Subrogation's long lost cousin

While RTW and subrogation are part of worker's compensation claims, it's easy to treat them like olive oil and balsamic vinegar. Two immiscible ingredients that go on the same salad.  However, just like making vinaigrette, with some work, RTW and subrogation can emulsify and yield a delightfully popular result.

Think of it as a family get-together where Subrina shows up to the [third] party, in her suit, hungry.  Some family members see Subrina as a person who only looks out for herself and is at the table to gorge upon as much as she can, and stuff her pockets with whatever else she can just because she doesn't want anyone else to have it.  The other guests fail to recall that she paid for a nice portion of the food being provided.

Meanwhile, Rhett T. Wellnest (RTW), the long lost cousin, is in the kitchen preparing the food.  He decides that he is going to help everyone with their New Year’s resolutions to get healthy by making up everyone’s plates as opposed to a buffet-style meal.  Rhett limits the amount of food on the table, thereby reducing the amount that Subrina will get.

Subrina may be upset at first, because there’s less food on the table, but realizes that she can only eat so much.  She leaves the table feeling glad that she didn’t over eat. She thanks her cousin Rhett, as it has helped her fill her up (make her whole) and not overindulge.

Rhett’s actions have also limited the other diners’ motivations to sit at the table for hours, filling and refilling their plates, when are no longer hungry.  The conversations are light, the portions are controlled, and everyone leaves the table satisfied, and any major family disputes over the last biscuit are averted.

If you were able to follow my far-stretching metaphor, I thank you.  If not, well...please accept my apologies. 

Often times when we think of RTW and subrogation, the only apparent relationship they have with each other is that they are both elements of workers’ compensation claims.  Other than that, they might as well be strangers.  But, when we look at it a bit closer, we can see there is relationship. Yes, RTW will reduce the amount of subrogation recovery, but only because it reduces the amount the insurance carrier pays out.  RTW may also reduce secondary gains as those at the settlement table are only seeking to take what they are entitled to.  Because carriers may only recover up to the amount of their lien (sometimes less based upon statute/policy limits etc), they too aren’t asking for more than their fill. RTW may also improve the injured worker’s credibility, which in turn may result in a better outcome in the third party case, leaving more food on the table for everyone.

Sure, there are some gaps in the story, and I’m sure our expert subrogation team can aptly point them out to me, but for now, I’m sticking with this version simply for explanatory purposes and nothing more.