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Posts tagged "Health Care"

Do Retirees Have Rights Under ERISA When Companies Cut Benefits?

It's no secret that one of the ways companies try to cut costs is through layoffs. Another method, which can be just as disruptive to employees, is by reducing pensions and other benefits earned while working for the employer. From well-known companies to state governments, retirement benefits seem to be a favorite target, and provisions in President Trump's proposed budget are also raising fears that retired federal employees would see their benefits shrink drastically over time.

Kenseth v. Dean Health Plan, No. 11-1560 (7th Cir. June 13, 2013)

An employee is informed by an employer health plan that surgery is approved, only to learn afterwards that the plan changed its mind and refused to pay over $77,000 in bills. The occasion of these simple and all-too-common facts gives the Seventh Circuit an opportunity to apply the recent U.S. Supreme Court decision Cigna Corp. v. Amara, 131 S. Ct. 1866 (2011). It holds that Cigna "substantially changes our understanding of the equitable relief available under section 1132(a)(3)" and expands judicial options for remedies, including monetary relief.

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