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No Breach of Fiduciary Duty for Health Plan TPA That Overpaid Claims for Participant Eligible for ESRD-Based Medicare
Thomson Reuters / EBIA
Apr. 5, 2018
"A union's health trust fund sued its TPA, claiming that the TPA breached its fiduciary duties under ERISA and its contractual duties under an administrative services agreement (ASA) by continuing to pay benefits for a participant after he became eligible for Medicare based on end stage renal disease (ESRD).... The court dismissed the claims against the TPA, concluding that it was not the TPA's duty to track participants' Medicare eligibility or applicability of the MSP requirements.... [T]he ASA expressly made the employer responsible for investigating participants' Medicare eligibility status." [Birmingham Plumbers and Steamfitters Local Union No. 91 Health and Welfare Trust Fund v. Blue Cross Blue Shield of Alabama, No. 17-443 (N.D. Ala. Mar. 8, 2018)]
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