In the described third-party subrogation scenario, the workers' compensation lien is deducted before determining the net amount paid to the injured worker.

• A. True
• B. False
• C. Not Specified
• D. Only If Approved

Answer: (A)

When a third party is responsible for an injury, the workers’ compensation insurer has a lien for benefits already paid to the injured worker. In any settlement or recovery from the third party, that lien is satisfied first. Only after the lien is paid does the remaining amount go to the injured worker, often after accounting for any attorney fees allocated from the recovery. This ordering ensures the insurer recoups the benefits it paid before the worker or their attorney receives the net proceeds. That’s why stating that the lien is deducted before determining the net amount paid to the injured worker is correct.