Sixth Circuit Archives - EMPLOYEE BENEFITS BLOG

Supreme Court Agrees to Hear Sulyma v. Intel Statute-of-Limitations Decision

by J. Christian Nemeth and Richard J. Pearl | Jun 18, 2019 | Benefit Controversies, Employee Benefits, Fiduciary and Investment Issues, Retirement Plans

The US Supreme Court recently agreed to hear Sulyma v. Intel Corp. Investment Policy Committee, a case in which the Ninth Circuit ruled that ERISA’s three-year statute of limitations requires a plaintiff to actually read materials in order to start the running of ERISA’s three-year statute of limitations. ERISA § 413(2) bars actions more than three years after “the earliest date on which the plaintiff had actual knowledge of the breach or violation,” and the Ninth Circuit held that a plaintiff who receives all the relevant information relating to her claim, but does not read it or does not recall reading it, does not have “actual knowledge” to start the limitations period. The Sixth Circuit, however, has held differently; in Brown v. Owens Corning Investment Review Committee, 622 F.3d 564, 571 (6th Cir. 2010), it held that the failure to read documents will not shield a plaintiff from having actual knowledge of the documents’ contents. Several district courts have held similarly, determining that the three-year limitations period begins when the plaintiff receives the relevant information, whether she reads it or not. (more…)

Supreme Court Declines to Hear Appeal to a Michigan Tax on Health Insurance Plans

by McDermott Will & Emery | Jan 18, 2017 | Health and Welfare Plans

The Supreme Court of the United States has declined to hear the Self-Insurance Institute of America Inc.’s ERISA preemption challenge to a Michigan tax on health insurance plans.

As we previously reported last year, the Sixth Circuit, had decided, on remand from the Supreme Court, that the Michigan Health Insurance Claims Assessment Act (Act) was not preempted by ERISA. The Act imposes a 1 percent tax on all paid claims by insurers or third-party administrators (TPAs) for health services rendered in Michigan to Michigan residents. The case was brought by the Self-Insurance Institute of America (SIIA), a trade association representing the sponsors of self-insured health plans and their TPAs, alleging the Act was preempted by ERISA. The trial court dismissed the case, concluding that the law was not preempted by ERISA. The Sixth Circuit also held that the Act was not preempted. After granting certiorari, the Supreme Court vacated this judgment and remanded the case to the Sixth Circuit for further consideration in light of the Supreme Court’s decision in Gobeille v. Liberty Mut. Life Ins. Co., which invalidated a Vermont statute that required an ERISA plan to report health care information to an all-payer claims database, since the Vermont law interfered with nationally uniform plan administration. On remand, the Sixth Circuit reaffirmed its original decision, finding that nothing in Gobeille warranted overturning its decision. SIIA’s attempt to appeal this decision to the Supreme Court was declined on January 9, 2017.

Michigan Health Insurance Claims Assessment Act is Not Preempted by ERISA

by McDermott Will & Emery | Aug 23, 2016 | Health and Welfare Plans

The Sixth Circuit, has decided, on remand from the Supreme Court, that the Michigan Health Insurance Claims Assessment Act (Act) is not preempted by ERISA. The Act imposes a 1 percent tax on all paid claims by insurers or third party administrators (TPAs) for health services rendered in Michigan to Michigan residents. The case was brought by the Self-Insurance Institute of America (SIIA), a trade association representing the sponsors of self-insured health plans and their TPAs, alleging the Act was preempted by ERISA. The trial court dismissed the case, concluding that the law was not preempted by ERISA. The Sixth Circuit also held that the Act was not preempted. After granting certiorari, the Supreme Court vacated this judgment and remanded the case to the Sixth Circuit for further consideration in light of the Supreme Court’s decision in Gobeille v. Liberty Mut. Life Ins. Co., which invalidated a Vermont statute that required an ERISA plan to report health care information to an all-payer claims database, since the Vermont law interfered with nationally uniform plan administration. On remand, the Sixth Circuit reaffirmed its original decision, finding that nothing in Gobeille warranted overturning its decision.