Erin Sweeney Comments on Montanile Ruling in Law360

"High Court ERISA Ruling Could Stretch Benefit Plans Thinner"
Law360
01.20.16Erin Sweeney commented on the U.S. Supreme Court's recent Montanile ruling that a welfare plan cannot recover medical payments from a plan participant's third-party settlement under ERISA, a ruling that could force plan administrators to institute costly measures to track litigation involving beneficiaries to quickly preserve settlement funds. "The ruling effectively tells plans [that] you need to be out there with a magnifying glass watching court dockets," Sweeney said. "Plans have argued that it will be incredibly expensive to track these claims and they would rather spend the dollars paying out claims. It's a whole other line of business they will need to get up to speed with." In order to avoid being left holding the bag by not being able to recover certain overpayments under ERISA, benefit plans will have to file proactive lawsuits and preemptive requests for injunctions, as well as seek to intervene in cases in which recovery of expenses may be at stake, Sweeney added.
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