July 14, 2008

Supreme Court Cites Inherent Conflict of Interest Issues in Self Funded Plans --

Employers Should Consider Reviewing Procedures Immediately

Any employer who sponsors a self funded benefit plan (including medical, disability, or life ) should take note of this recent ruling.

A United States Supreme Court decision issued in June increased the litigation risk for sponsors of self funded plans. On June 19, 2008, the Court announced its holding in Metropolitan Life Insurance Company v. Glenn. The case reinforced the conflict of interest factor that courts will consider in any review of a denied benefit claim.

Self funded plans at risk:

 disability plans

 medical plans

 life insurance plans