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Eighth Circuit Case Highlights Importance of Digging into Third Party Administrator Procedures
Thompson Hine LLP via Lexology; registration required
July 25, 2019
"Some TPAs ... have ceased the practice [of cross-plan offsetting] altogether, at least with respect to non-network providers. Others, responding only to the Eighth Circuit's narrow ruling, have taken the position that the practice is still permissible as long as it's specifically authorized by the plan.... [P]lan sponsors looking to minimize risk should opt out or otherwise end the practice of cross-plan offsetting. Even if the plan has already been given the opportunity to opt out, and the window has passed, nothing prevents a plan sponsor from revisiting the issue with the Plan's TPA." [Peterson v. UnitedHealth Group Inc., No. 17-1744 (8th Cir. Jan. 15, 2019; cert. pet. filed May 30, 2019)]
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