Since this page has been discussing potential exposure for the personal injury plaintiff’s attorney under the Medicare Secondary Payors Act, it seems a good time to remind readers of the similar potential exposure created by ERISA and other similar liens. A recent Federal case out of the Sixth Circuit seems like a good starting point.
In Longaberger Co. v. Kolt, 586 F.2d 459 (6th Cir. 2009), the Sixth Circuit upheld summary judgment in favor of a self-funded ERISA plan which would recover one-third of a six-figure lien from the insured’s personal injury attorney. The important thing to remember from this case, which does a good job of explaining the current state of the law, is that (1) self-funded ERISA plans may be limited to equitable remedies, but those remedies have teeth, especially after Sereboff v. Atlantic Medical Services, Inc., 547 US 356 (2006); and (2) a plaintiff attorney ignores the ERISA lien at his or her peril.
I will make no effort to explain the state of the law in this area. I encourage you to read the above cited opinions for a clearer understanding of the law. I further submit that you consider the same suggestions offered for dealing with the Medicare Secondary Payor Act when dealing with potential ERISA reimbursement issues.
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