Self-insured employer required to pay heart/lung benefits plus W.C. benefits entitled to reimbursement from Supersedeas Fund. Two-thirds of amount paid automatically represents workers' compensation benefits.

The claimant sustained a work-related injury in the course and scope of his employment as a police officer. The employer filed a termination petition. The employer's request for supersedeas was denied, but, ultimately, the workers' compensation judge granted the petition. The employer then filed a petition for Supersedeas Fund reimbursement, and that petition was granted. The Appeal Board affirmed the decision of the judge.

On appeal to the Commonwealth Court, the Bureau argued that the employer was not entitled to reimbursement from the Supersedeas Fund because the claimant's compensation was paid pursuant to the Heart and Lung Act. In addition, the Bureau argued that the evidence did not support the conclusion that two-thirds of the monies paid to the claimant represented workers' compensation benefits. According to the Bureau, the proof of payment clearly showed that the amounts paid to the claimant were entirely Heart and Lung benefits, which consisted of full wages.

The Commonwealth Court rejected the Bureau's arguments and dismissed their appeal. The court pointed out that neither the Appeal Board nor the workers' compensation judge attempted to adjudicate a Heart and Lung issue. Moreover, the employer did not request Supersedeas Fund reimbursement for Heart and Lung benefits paid. The Commonwealth Court further held that, unless there was evidence to the contrary, as a matter of law, when an employer is self-insured for workers' compensation purposes and is required to pay Heart and Lung benefits in addition to workers' compensation benefits, two-thirds of the amount paid automatically represents workers' compensation benefits.

Case Law Alert - 1st Qtr 2012