Workers’ compensation systems rely on statutory frameworks that allocate responsibility among employers, insurers, and state-administered funds. Disputes often arise when insurers or reinsurers seek reimbursement for benefits paid, particularly in complex situations involving insolvency or layered coverage. A recent Massachusetts decision clarified the scope of reimbursement rights under the Workers’ Compensation Act, emphasizing that courts will adhere closely to statutory language and resist expanding exclusions beyond those expressly provided by the Legislature. If you are dealing with workers’ compensation coverage issues or reimbursement disputes, you should consider speaking with a Massachusetts workers’ compensation attorney to protect your interests.
History of the Case
Allegedly, an employee sustained a workplace injury while employed by a self-insured employer that had secured both a bond and reinsurance coverage to satisfy its workers’ compensation obligations. Over time, the employee became permanently disabled and began receiving ongoing benefits, including cost-of-living adjustments.
It is alleged that after the employer’s losses exceeded a contractual threshold, the reinsurer began reimbursing the employer for certain base benefits. At the same time, another entity paid additional benefits following the employer’s bankruptcy. Eventually, the reinsurer was required to pay both base and cost-of-living benefits directly to the injured employee after administrative proceedings determined its obligations under the governing statute.
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