In many States, the WC carrier must pay a portion of the individual’s attorney fees
and other costs related to the third party settlement. The WC carrier’s share of these
costs may be greater than the amount of WC to be repaid. In these cases, the WC lien
is considered paid in full and the excess cost reimbursement payable to the individual
after the WC lien is satisfied is not offsettable. The excess may be paid in a lump
sum or in periodic payments. Do not confuse these payments with WC. Always read the
settlement documents carefully to determine if a cost-sharing agreement exists.