ERISA Plans Should Act To Reinforce Reimbursement Rights In Light Of Recent SCOTUS Decision

ERISA Plans Should Act To Reinforce Reimbursement Rights In Light Of Recent SCOTUS Decision

Feb 02, 2016

Client Alert

Brownstein Client Alert, February 2, 2016

Group health plan administrators should take actions to address the recent U.S. Supreme Court decision holding that an ERISA plan cannot enforce its equitable lien, which had been established through the plan’s reimbursement provisions, when a participant spent amounts received in a third-party settlement on “nontraceable” assets. See, Montanile v. Board of Trustee’s of the National Elevator Industry Health Benefit Plan (No. 14-723), 2016 WL 228344 (Jan. 20, 2016).

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