Phia Group Russo & Minchoff

TABA Conference

Adam V. Russo | July 31, 2008

On Monday September 8, 2008, Adam V. Russo, Esq. will be presenting his seminar on self-funding benefits and the new legal battles under ERISA at the Texas Association of Benefit Administrators (TABA) 2008 Fall Conference & Exhibition held at the Marriott Dallas Solana Hotel in Westlake, Texas.

See the entire presentation before the conference

Paxil Settlement Proposed For Plans Paying on Patients Under 18 Years of Age

Adam V. Russo | July 31, 2008

Please review the attached documents regarding a class action suit for which settlement has been proposed.  It addresses patients who were prescribed Paxil prior to their eighteenth birthday, for which you may have paid claims and may be due reimbursement.

Please review the information we have provided and determine if this affects you. 

ERISA Goes To The Presses

Adam V. Russo | July 29, 2008

The Providence Journal features a review by Mandy Twaddell, analyzing the new book by Peter Gosselin.  The book’s title is High Wire: The Precarious Financial Lives of American Families.  The book describes various pitfalls many American families experience today, and tells the tale of at least one encounter with ERISA. (more…)

Breach of Duty Suit Announced

Adam V. Russo | July 29, 2008

The Brualdi Law Firm, P.C. has issues a press release regarding suit they have filed against Lehman Brothers Holdings, Inc. for potential violations of ERISA.  The suit concerns Lehman Brother’s 401(k) plan, which comes within the purview of ERISA.  Brualdi, representing members of the Plan, assert that Lehman Brothers and other administrators of the Plan may have breached their fiduciary duties, owed to plan participants.  Such a breach may occur when fiduciaries fail to prudently manage plan assets. (more…)

Landmark Class-Action Settlement Involves ERISA

Adam V. Russo | July 29, 2008

The United States District Court for the District of New Jersey, following a hearing on July 24, 2008, has approved a $250 million settlement in the matter of plan members versus Health Net, Inc.  (more…)

7th Circuit Follows 8th Regarding Administrator “Non-Decisions”

Adam V. Russo | July 29, 2008

The 7th Circuit Court of Appeals has just held in Pakovich v. Broadspire Services, Inc., that when a plan administrator fails to issue a benefits determination, and there is no administrative decision regarding a claim on record, the Court is not to make a decision in lieu of the administrator.  Instead, the case is remanded to the administrator, who must make a clear benefits determination decision.  Only after all administrative options are exhausted may either party to said decision appeal the decision to the Federal Courts under ERISA.

http://wislawjournal.com/article.cfm/2008/07/28/071520-Pakovich-v-Broadspire-Services-Inc (more…)

Allocation of Settlement Violates Terms of Plan

Adam V. Russo | July 23, 2008

Diamond Crystal Brands, Inc. v. Wallace, 531 F.Supp.2d 1366 (N.D. Ga.2008)

After the negligent medical care and consequential death of Deborah Hayes, the Estate and her daughter Tamara Hayes pursued a wrongful death claim against the hospital.  In Georgia State Court plaintiffs settled for $900,000, of which $837,000 went to Tamara Hayes and $63,000 to the Estate of Deborah Hayes.

Prior to Deborah Hayes’s death, her employer, Diamond Crystal provided $261,863.58 in medical benefits related to the medical malpractice.  After the settlement, Diamond Crystal sought reimbursement of claims paid. (more…)

Ninth Circuit finds CA “Copying Fees” Law Preempted by ERISA

Adam V. Russo | July 14, 2008

In the matter of Sgro v. Danone Waters of North America, Inc., 2008 U.S. App. LEXIS 13973 (9th Cir. Jul. 2, 2008), an employee – Mitchell Sgro – applied for benefits from his employer’s ERISA Plan.  He incurred $412.00 in copying fees, in the process of supplying documentation and medical records to his employer as part of his claim. (more…)

Health Plans get Judicial Support and Bad Press – Again

Adam V. Russo | July 14, 2008

You may have heard some grumbling about the recent case of Amschwand v. Spherion Corp., 2007 U.S. App. LEXIS 24435 (5th Cir. 2007).  The facts of the case are as follows:

Thomas Amschwand was a participant in his employer’s ERISA benefits plan, which included life insurance benefits.  The employer switched insurers after Thomas Amschwand was diagnosed with cancer. The new policy would not cover an employee unless and until that employee had worked one full day (post plan swap).  According to the Amschwand’s attorney, they were never advised of the requirement.  Unfortunately, Mr. Amschwand died without ever having worked a day after the employer had changed insurers. (more…)

Supreme Court Decides MetLife v. Glenn in Insured’s Favor

Adam V. Russo | July 7, 2008

by Ron E. Peck, Esq.

The matter of administrative discretionary authority, when administering a health benefits plan within the purview of ERISA, and the deference federal courts must show to such discretion, has been the new hot topic in ERISA ever since subrogation rights were affirmed by the Sereboff case.  The Supreme Court first stated that health plan administrators, who assert discretionary authority to administer a plan within the plan’s document, are due deference in Firestone Tire and Rubber Co. v. Bruch.  Afterward, federal courts could overturn administrator benefit determinations only if they find that the administrator has abused its discretion (an arbitrary and capricious standard of review). (more…)

Relinquished UIM Subrogation Rights In Oklahoma

Adam V. Russo | July 1, 2008

As found in multiple cases in Oklahoma, an insured who quickly settles with a liable third party (tort-feasor) will eliminate any and all opportunities for its UIM carrier to subrogate or seek reimbursement for paid claims, against third party policy limits.  (more…)

Maine’s Workers’ Compensation Statute v. ERISA Policy

Adam V. Russo | July 1, 2008

Many involved in the administration of ERISA Plans do not realize that some state insurance law is preempted even when a fully insured ERISA Plan is involved.

In Spellman  v. United Parcel Service, 540 F. Supp.2d 237 (D.C. Maine 2008), the Court addressed an issue of enforcing Maine’s  workers’ compensation statutes with regards to health plans under ERISA. (more…)