Phia Group Russo & Minchoff

Court Upholds Full Medicare Recovery Of UM Benefit Pool, Over Survivor’s Arguments

cmonfils | May 3, 2011

Coordination of Benefits              April 2011 | Vol. 19, No. 2 

Once again we have a case involving a dispute — between Medicare and a survivor of a deceased Medicare beneficiary — over who has the first right to recovery from a third party’s obligations to the Medicare beneficiary. The case deals with Medicare’s rights under the Medicare Secondary Payer (MSP) law (42 U.S.C. §1395y(b)(2)). The MSP law provides that Medicare can recover benefits it paid from amounts that the Medicare beneficiary recovers from a third party.  (more…)

California U.S. District Court Holds That The Common Fund Rule Does Not Apply

cmonfils | May 3, 2011

Coordination of Benefits              April 2011 | Vol. 19, No. 2 

It is well established that a health plan subject to ERISA can recover the benefits it paid from identifiable tort settlement proceeds held by the plan participant’s attorney. When those proceeds are identifiable as to their source an equitable lien can be asserted against the proceeds. If a self-funded ERISA health plan is subject to the common fund rule, both the attorney and the plan would have to share client’s attorney’s fees, and each of them would bear a pro rata share of the tort settlement proceeds (that is, the common fund).  (more…)

ERISA-Tenth Circuit Determines That Plaintiff Has No Standing To Bring Suit Under ERISA, So That His Claim Cannot Be Removed To Federal Court

cmonfils | April 25, 2011

www.erisalawyerblog.com 

By Stanley D. Baum on April 21, 2011 

In Hansen v. Harper Excavating, Inc., No. 08-4089 (10th Cir. 2011), the plaintiff, Jeffery Hansen (“Hansen”), had worked for the defendant, Harper Excavating, Inc. (“Harper”), for six months beginning in 2003. During this time, he attempted to enroll in Harper’s health insurance plan (the “Plan”). The Plan is subject to ERISA. However, unknown to Hansen, Harper never enrolled him in the Plan, although it did deduct Plan contributions from his paycheck. (more…)

Developments for Employers that Sponsor Wellness Programs

cmonfils | April 25, 2011

www.mwe.com 

April 15, 2011

The ruling in Seff V. Broward County has helped to establish guidance as to what is permissible with respect to the design of wellness programs under the Americans With Disabilities Act (ADA). The U.S. District Court for the Southern District of Florida ruled that Broward County’s wellness program fell within the ADA’s safe harbor provision.  (more…)

Sixth Circuit Lifts Injunction Requiring Blue Cross to Disclose Discount Information

cmonfils | April 11, 2011

www.myhealthguide.com

MyHealthGuide Source: John Eggertsen, Esq., Eggertsen Consulting, P.C., www.jhelaw.com

The U.S. Court of Appeals for the Sixth Circuit April 6 reversed an injunction that required Blue Cross Blue Shield of Michigan (BCBSM) to provide a multiemployer health fund with documents detailing BCBSM’s discount arrangements with medical providers (Pipefitters Local 636 Insurance Fund v. Blue Cross & Blue Shield of Michigan, 6th Cir., No. 09-2294, unpublished 4/6/11). (more…)

Court Affirmed ERISA Embezzlement Convictions – Healthcare Overpayment Recovery Impact & Compliance For Self-Insured Plans

cmonfils | March 25, 2011

www.sfgate.com

Thursday, March 17, 2011   

ERISAclaim.com announced 2011 free webinars to examine a recent federal appeals court decision, USA v. Eriksen, (9th Cir. Case:10-30056, ID:7673525, 03/09/2011), affirming the ERISA Embezzlement Convictions against two defendants administering a 401(k) plan, as a part of its new Plan Assets Recovery & Audit Programs to assist self-insured health plans in fiduciary compliance and plan assets recovery. The new Webinars will examine the Court Decision’s impact, along with recent DOL Contributory Plans Criminal Project, on ERISA Health Plan Overpayment Recoupment Market, in case of any TPA’s failure to remit recovered plan assets from healthcare providers to the self-insured ERISA plans and failure to report recouped plan assets to DOL and IRS on 5500 Forms, in a healthcare industry with an estimated recouped plans assets in billions of dollars. (more…)

Assignments of Benefits – Do They Include Rights To Statutory Penalties & Attorneys’ Fees?

cmonfils | March 18, 2011

www.healthplanlaw.com  Roy Harmon III

March 15, 2011

It is well-established that ERISA plan participants and beneficiaries may assign their rights to their health care provider. Misic v. Bldg. Serv. Employees Health & Welfare Trust, 789 F.2d 1374, 1378-79 (9th Cir. 1986). As an assignee, the provider has standing “to assert the claims of his assignors.” Id. at 1379. A Plan may also prohibit the assignment of rights and benefits. Davidowitz v. Delta Dental Plan of California, Inc., 946 F.2d 1476 (9th Cir. 1991). Both the Braun and Rudolph Plans prohibit the assignment of benefits. (more…)

Judge Affirms ICA’s Standing to Pursue ERISA Claims

cmonfils | March 18, 2011

www.chiroeco.com

March 14, 2011 — The International Chiropractors Association (ICA) announced today that its claims challenging the overpayment recovery practices of various Blue Cross Blue Shield entities were upheld by Judge Matthew F. Kennelly of the United Stated District Court in Chicago, IL, in Pennsylvania Chiropractic Association, et al. v. Blue Cross Blue Shield Association, et al., Case No. 1:09-cv-05619. (more…)

Eighth Circuit Holds Mental Health Treatment Limitation Inapplicable

cmonfils | March 10, 2011

www.healthplanlaw.com       March 4, 2011 •

“ . . . [I]n order for Principal to reasonably deny S.W.’s hospital charges, substantial evidence had to support its determination that the primary focus of her hospitalization was mental health treatment, i.e., treatment designed to alter her behavior. While there is certainly evidence that mental health treatment was one focus of S.W.’s hospitalization, we conclude there is insufficient evidence to support the determination that S.W.’s mental health was the primary focus of the hospitalization.“ (more…)

Contractual Deference Standard Upheld In Favor Of Non-Fiduciary

cmonfils | March 1, 2011

www.healthplanlaw.com

February 21, 2011 • Roy Harmon III

In Comrie v. IPSCO (7th. Cir. 2/18/11) the Seventh Circuit considered whether a discretion-conferring clause in a SERP plan document should be applied when the plan administrator is not a fiduciary. Noting a difference of opinion on the issue, the Seventh Circuit, via Judge Easterbrook, saw the issue as very simple to resolve: (more…)

Defining ‘Essential’ Care – Regulators Move to Specify Coverage Under Health Law; Insurers Seek Flexibility.

cmonfils | March 1, 2011

www.wsj.com

FEBRUARY 28, 2011.    By AVERY JOHNSON

Maggie Haslam’s five-year-old autistic son, Drew, has undergone intense behavioral, physical and speech therapy that helped him learn to dress himself and communicate such concepts as “over” and “under.”

The next big issue for the federal health law as it moves toward implementation is how regulators will define so-called essential benefits—the basic medical services that health plans must cover under the law. (more…)

Denial of Experimental Treatment Reversed in ERISA Case

cmonfils | February 7, 2011

www.myhealthguide.com

MyHealthGuide Source: Todd Leeuwenburgh, Editor, Coordination of Benefits Handbook, Thompson Publishing Group, 2/3/2011, www.thompson.com

Case: Lafferty v. Providence Health Plans, 2011 WL 127489 (D. Ore., Jan. 14, 2011) related to the fees; the underlying case was decided in April 2010.

Editor’s Note: The health plan in this case is not self-funded. However, ERISA is cited by the Court. Many self-funded plans deny coverage and payment for experimental treatment. This case shows the outcome of a specific case when payor denial decisions go beyond what is deemed acceptable.

Preface from Mr. Leeuwenburgh: This case may be instructive to see the boundaries for an experimental treatment denial. If the policy was explicitly stated — we’ll deny your whole episode of care if we unbundle it and find you used any part that was experimental — and if this plan had followed ERISA’s review and appeal procedures do you think the insurer could have justified its denial? (more…)

Attachment Of Proof Of Benefit Assignment May Prove Critical To Removal

cmonfils | February 2, 2011

www.healthplanlaw.com

January 26, 2011 •

The second prong of the Pascack test is also satisfied. Plaintiff identifies no other “independent legal duty” that would support its claims. Plaintiff’s argument that this is a “rate of payment” case is of no avail. 6 Plaintiff admits that it has no contractual relationship with any Defendants. At the same time, it argues that its right to payment is dependent upon assignments of benefits. The amount of payment (i.e., the “rate”) at issue would necessarily implicate the rates in the ERISA plans under which Plaintiff claims it has received assignments. (more…)

JOHNSON CONTROLS, INC. v. FLAHERTY

cmonfils | January 25, 2011

http://www.leagle.com/xmlResult.aspx?xmldoc=In%20FCO%2020110118108.xml&docbase=CSLWAR3-2007-CURR

JOHNSON CONTROLS, INC. v. FLAHERTY

JOHNSON CONTROLS, INC., in its capacity as fiduciary for the Johnson Controls, Inc. Welfare Plan, Plaintiff-Appellee,v.DANIEL J. FLAHERTY, METNICK, LEVY & LONG, P.A., Defendants-Appellants. (more…)

District Court Permits Supplementation Of Record But With Instruction On Law

cmonfils | January 12, 2011

www.healthplanlaw.com

January 7, 2011 • Roy Harmon III

ERISA provides federal courts with jurisdiction to review benefits determinations made by fiduciaries or plan administrators. 29 U.S.C. § 1132(a)(1)(B); see also Lopez ex rel. Gutierrez v. Premium Auto Acceptance Corp., 389 F.3d 504, 509 (5th Cir. 2004). A district court’s function when reviewing ERISA claims is like an appellate court’s.

“[The court] does not take evidence, but, rather, evaluates the reasonableness of an administrative determination in light of the record compiled before the plan fiduciary.” Leahy v. Raytheon Co., 315 F.3d 11, 18 (1st Cir.2002). Courts cannot consider additional evidence “resolve the merits of the coverage determination—i.e. whether coverage should have been afforded under the plan-unless the evidence is in the administrative record, relates to how the administrator has interpreted the plan in the past, or would assist the court in understanding medical terms and procedures.” Crosby v. La. Health Serv. & Indem. Co., — F.3d —, No. 10-30043, 2010 U.S. App. LEXIS 26323, *8, 2010 WL 5356498 (5th Cir. Dec. 29, 2010). A claimant is not permitted to explore, through discovery in an ERISA lawsuit, what information a plan administrator “should have considered” in making its benefits determination, as opposed to analyzing the information that the plan administrator “did consider” in making its decision. Griffin, 2005 U.S. Dist. LEXIS 18720, 2005 WL 4891214, at *2. (more…)