Benefit Changes as Knudson Solution?

[mal]

One of our multiemployer health plans has always had language in the

SPD about the ability of the Administrator to offset future benefits

against monies owed to the plan as a result of erroneous payments, subrogation situations, etc. Since [/i]Knudson the Plan has begun

to more actively use the offset provisions to collect monies due the Fund.

Recently a participant submitted a complaint to the DOL/EBSA. After collecting

the documents, the office decided to take no action, but also would

not explicitly "bless" the offset. The participant was given a 502 letter.

My first question then, is whether anyone knows of guidance by the DOL

regarding equitable offset by a health plan?

Also, this plan is considering changing its "Dollar Bank" rules to

compel participants to quickly pay any debts to the plan. The Dollar Bank is a non vested account from which the Plan withdraws the monthly cost of the health premium. Once the changes are approved, the participant who refuses to repay the Plan will not be able to "bank" his excess work hours, nor will he be able to use the Dollar Bank to continue eligibility once he is laid off. Essentially, his continued coverage will depend on the prior month's work hours.

Does this raise any red flags to anyone? My research has yielded very little.