Articles

John McGowan Analyzes Supreme Court's ERISA Preemption Ruling

Articles / March 15, 2016

Partner John McGowan authored an article published March 15, 2016, by Bloomberg BNA’s Pension and Benefits Daily. The article, “Gobeille v. Liberty Mutual Insurance Co.: Just Another ERISA Preemption Decision – Or a Bellwether Decision for States and Providers Caught Up in Health Care Reform’s War of Attrition?,” analyzes the recent U.S. Supreme Court ruling in Gobeille which held that Vermont’s claims data law was expressly preempted by ERISA as applied to private sector employers’ self-insured group health plans. In the article, McGowan discusses the decision, offers insight into its immediate and potential effects, and provides the following three takeaways:

  1. that ERISA's preemption is broad (despite what one may have recently heard to the contrary);
  2. that ERISA plan fiduciaries need to pay closer attention to their participants' and beneficiaries' records; and
  3. that an awful lot of states and providers really, really want to know what private sector employers are up to when it comes to paying claims and making provider arrangements—and that they really would prefer doing it themselves, for as-yet undisclosed reasons.

Read the article.

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