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Ninth Circuit: ERISA Preempts State Insurance Law Bans on Discretionary Clauses for Self-Funded ERISA Plans
Seyfarth Shaw LLP Sept. 13, 2017
"The Ninth Circuit has weighed into the national debate over discretionary clauses in ERISA plans, holding that ERISA preempts a state-law ban on discretionary clauses for self-funded disability plans, but not for fully-insured plans.... The Ninth Circuit focused its analysis on the difference between a fully-insured and a self-funded benefit plan." [Williby v. Aetna Life Ins. Co., No. 15-56394 (9th Cir. Aug. 15, 2017)]
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