{"id":821,"date":"2021-01-14T14:46:28","date_gmt":"2021-01-14T19:46:28","guid":{"rendered":"https:\/\/www.joannhoffman.com\/blog\/?p=821"},"modified":"2021-01-14T14:46:28","modified_gmt":"2021-01-14T19:46:28","slug":"third-party-lien-calculations-differ-in-paying-federal-vs-state-workers-compensation-liens","status":"publish","type":"post","link":"https:\/\/www.joannhoffman.com\/blog\/third-party-lien-calculations-differ-in-paying-federal-vs-state-workers-compensation-liens\/","title":{"rendered":"Third party lien calculations differ in paying Federal vs State Workers\u2019 Compensation Liens"},"content":{"rendered":"<p>The calculations for payment of the the workers compensation lien significantly differ if it is a State WC lien under FSA 440.39(3)(a) or under the Federal Employees\u2019 Compensation Act (FECA).\u00a0 But what about when calculating Defense Base Act (DBA) liens \u2013 which is merely an extension of the Federal Worker\u2019s Compensation program?\u00a0 Below is a precursory analysis of how liens are calculated and based on same, it\u2019s clear Florida and DBA lien calculations are not nearly as complex as FECA calculations.<\/p>\n<p><strong><u>Florida Worker\u2019s Compensation Lien Calculation: <\/u><\/strong><\/p>\n<p>Under Florida\u2019s 3<sup>rd<\/sup> party lien law, Worker\u2019s Compensation (WC) carriers are entitled to recover 100% of past and future payments, but&#8230;. the same law reduces this recovery by the carrier\u2019s proportionate share of the injured worker\u2019s attorney fees\/costs and any reductions considering the injured workers own negligence in the settlement. It is very important the injured person&#8217;s attorney argue the injured worker did not get the full value of the case because he was partly at fault.<\/p>\n<p>When a WC carrier has provided benefits to the injured worker, the Carrier has a lien up to the full amount it has paid.\u00a0 The lien may be waived if the injured person gives up his right to future benefits.\u00a0 When it is not waived, the amount the injured worker must pay back is determined by the Manfredo Formula.\u00a0 See <a href=\"https:\/\/scholar.google.com\/scholar_case?case=11759727170035684001\"><em>Manfredo v. Employer\u2019s Casualty Insurance Company<\/em><\/a>, 560 So.2d 1162 (Fla 1990). The formula, as set forth in the statute, can be difficult to understand.\u00a0 The formula has not changed since I posted on this in 2013. However, the easiest way to understand the <em>\u201cManfredo Formula\u201d is by example:<\/em><strong><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-822 alignleft\" src=\"https:\/\/www.joannhoffman.com\/blog\/wp-content\/uploads\/2020\/12\/accounting-calculator-1-1241522-300x225.jpg\" alt=\"accounting-calculator-1-1241522-300x225\" width=\"288\" height=\"216\" srcset=\"https:\/\/www.joannhoffman.com\/blog\/wp-content\/uploads\/2020\/12\/accounting-calculator-1-1241522-300x225.jpg 300w, https:\/\/www.joannhoffman.com\/blog\/wp-content\/uploads\/2020\/12\/accounting-calculator-1-1241522-1024x768.jpg 1024w, https:\/\/www.joannhoffman.com\/blog\/wp-content\/uploads\/2020\/12\/accounting-calculator-1-1241522-768x576.jpg 768w, https:\/\/www.joannhoffman.com\/blog\/wp-content\/uploads\/2020\/12\/accounting-calculator-1-1241522-1536x1152.jpg 1536w, https:\/\/www.joannhoffman.com\/blog\/wp-content\/uploads\/2020\/12\/accounting-calculator-1-1241522-1000x750.jpg 1000w, https:\/\/www.joannhoffman.com\/blog\/wp-content\/uploads\/2020\/12\/accounting-calculator-1-1241522-160x120.jpg 160w, https:\/\/www.joannhoffman.com\/blog\/wp-content\/uploads\/2020\/12\/accounting-calculator-1-1241522.jpg 1600w\" sizes=\"(max-width: 288px) 100vw, 288px\" \/><\/strong><\/p>\n<p>The case of\u00a0<i>Manfredo v. Employer\u2019s Casualty Ins. Co.<\/i>, 560 So.2d 1162 (Fla. 1990) provides for the formula to use for the Florida state wc lien repayment.\u00a0 Assume the third party settlement of $275,000.00 is divided by our client\u2019s net tort recovery, which is $127,124.80. This amount is arrived at by deducting our one-third for attorney\u2019s fees and costs along with the outstanding medical bills as our client had surgeries outside of workers\u2019 compensation. Divide $127,124.80. that he will receive over the full value of the case, $275,000.00, equals a 46% payback.\u00a0 That 46% payback times the wc lien of $20,359.38 calls for us to pay the lien holder $9,441.57.<\/p>\n<p>Now is this formula used when calculating FECA liens or DBA liens?\u00a0 The short answer is <strong>NO<\/strong><\/p>\n<p> <a href=\"https:\/\/www.joannhoffman.com\/blog\/third-party-lien-calculations-differ-in-paying-federal-vs-state-workers-compensation-liens\/#more-821\" class=\"more-link\">Continue reading \u2192<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The calculations for payment of the the workers compensation lien significantly differ if it is a State WC lien under FSA 440.39(3)(a) or under the Federal Employees\u2019 Compensation Act (FECA).\u00a0 But what about when calculating Defense Base Act (DBA) liens \u2013 which is merely an extension of the Federal Worker\u2019s Compensation program?\u00a0 Below is a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[179,178],"tags":[180,182,181],"class_list":["post-821","post","type-post","status-publish","format-standard","hentry","category-calculation-of-workers-compensation-lien","category-workers-compensation-lien","tag-dba-lien","tag-feca-lien","tag-wc-lien"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Third party lien calculations differ in paying Federal vs State Workers\u2019 Compensation Liens &#8212; 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Florida Injury Attorneys Blog &#8212; January 14, 2021","twitter_description":"The calculations for payment of the the workers compensation lien significantly differ if it is a State WC lien under FSA 440.39(3)(a) or under the &#8212; January 14, 2021","twitter_image":"https:\/\/www.joannhoffman.com\/blog\/wp-content\/uploads\/2020\/12\/accounting-calculator-1-1241522-300x225.jpg","twitter_misc":{"Written by":"Jo Ann Hoffman &amp; Associates, P.A.","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.joannhoffman.com\/blog\/third-party-lien-calculations-differ-in-paying-federal-vs-state-workers-compensation-liens\/#article","isPartOf":{"@id":"https:\/\/www.joannhoffman.com\/blog\/third-party-lien-calculations-differ-in-paying-federal-vs-state-workers-compensation-liens\/"},"author":{"name":"Jo Ann Hoffman &amp; Associates, P.A.","@id":"https:\/\/www.joannhoffman.com\/blog\/#\/schema\/person\/18c7150f3eef0adc9ff3ee4e602d2d75"},"headline":"Third party lien calculations differ in paying Federal vs State Workers\u2019 Compensation Liens","datePublished":"2021-01-14T19:46:28+00:00","mainEntityOfPage":{"@id":"https:\/\/www.joannhoffman.com\/blog\/third-party-lien-calculations-differ-in-paying-federal-vs-state-workers-compensation-liens\/"},"wordCount":1520,"image":{"@id":"https:\/\/www.joannhoffman.com\/blog\/third-party-lien-calculations-differ-in-paying-federal-vs-state-workers-compensation-liens\/#primaryimage"},"thumbnailUrl":"https:\/\/www.joannhoffman.com\/blog\/wp-content\/uploads\/2020\/12\/accounting-calculator-1-1241522-300x225.jpg","keywords":["Dba lien","FECA lien","wc lien"],"articleSection":["calculation of workers compensation lien","workers compensation lien"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.joannhoffman.com\/blog\/third-party-lien-calculations-differ-in-paying-federal-vs-state-workers-compensation-liens\/","url":"https:\/\/www.joannhoffman.com\/blog\/third-party-lien-calculations-differ-in-paying-federal-vs-state-workers-compensation-liens\/","name":"Third party lien calculations differ in paying Federal vs State Workers\u2019 Compensation Liens &#8212; 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