Last week, the US Supreme Court heard arguments in Montanile v. Board of Trustees of the National Elevator Industry Health Benefit Plan. At issue in that case is whether a beneficiary of a benefit plan governed by ERISA can defeat enforcement of the plan’s right of subrogation (its lien) by dissipating the funds received by that beneficiary. A ruling against the plan could have far-reaching practical considerations, particularly to employers with self-insured health plans. At the minimum, a ruling in favor of the beneficiary would serve as a cautionary tale for plan administrators: do not allow a significant amount of time to elapse during negotiations of an equitable lien prior to bringing a lawsuit for enforcement of the lien.
A detailed discussion of Montanile is on Squire Patton Boggs’ Compensation and Benefits Global Insights blog.