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ERISA'S Requirements For Reimbursement and The United States Supreme Court

Posted on Jan 22, 2016

Recently, the United States Supreme Court decided 8-1 that an ERISA health plan could not attach the health care recipient's general assets after the recipient's  lawyer distributed the money to the recipient.   Had the recipient kept the money in a separate account that could be identified as settlement money, the plan could have gone after those funds.

Those of you that have personal injury claims with ERISA liens should not jump for joy at this decision.   The plan still has remedies such as not paying for your health care until the plan's money is paid back.  This means that your future medical bills may be offset by the health plan and not paid until the money you owe the plan is paid back.

On the other hand, if your plan paid your bills and you now have a new health plan, you have several options that you may want to discuss with your lawyer.

In no uncertain terms should you ever pay the plan back in full.  This is why it's important to have an attorney help you navigate these trecherous waters.  

The case, if you're interested is:  Montanile v. Board of Trustees of the National Elevator Industry Health Benefit Plan.

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