Overview
Steptoe partner Paul Ondrasik was quoted in a November 9 article in Reuters titled “Supreme Court Mulls if ERISA Allows Lawsuits for Exhausted Funds.” The article discusses whether federal benefits law permits a health insurance plan to sue for reimbursement from funds that have been spent already.
A case before the Supreme Court raises the recurring issue of a benefits plan's rights under the Employee Retirement Income Security Act (ERISA) to seek reimbursement from funds paid by a third party, which is known as subrogation. The issue of reimbursement from exhausted funds has split the federal appeals courts, with six circuits holding that plans can enforce liens even when the identified fund has been exhausted, while two have found that the lien is unenforceable if the money is gone.
Mr. Ondrasik, head of Steptoe’s ERISA, Labor & Employment Group, says “the case also has broader implications on just what is the scope of equitable relief under ERISA. That's a hot issue in the lower courts."
The full article can be read at Reuters (subscription required).
