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The BenefitsLink Newsletter - Welfare Plans Edition
Patients' Rights Bill Snagged Again Excerpt: "Democrats said Thursday that unless a deal could be struck by next week on legislation to give patients more protections against HMOs, they would give up on negotiations with Republicans aimed at building a House-Senate compromise." (Associated Press)
Disabled Employee Buys 24 Months of Continued Coverage But Sues For Failure to Get COBRA Notice Excerpt: "The employee argued that by not notifying him of his COBRA rights, the employer deprived him of the opportunity to make arrangements for other coverage before his COBRA period ran out ... [and] the court concluded the employer was NOT entitled to summary judgment on the employee's statutory penalty claim." (EBIA Weekly)
California Medical Association Takes HMOs To Court Excerpt: "In the first lawsuit of its kind, the California Medical Association has accused three of the state's largest, for-profit HMOs of running what amounts to an illegal racket. The lawsuit, filed Thursday in federal court in San Francisco, charges Blue Cross, Pacificare and HealthNet with violating the Racketeer Influenced and Corrupt Organizations Act (RICO)." (New York Times Syndicate)
6th Cir: Collective Bargaining Agreement's Retiree Medical Benefits Clause Created Lifetime Benefits Excerpt: "In Maurer v. Joy Technologies, Inc., ... the collective bargaining agreement (CBA) ... provided for retiree medical benefits. The term of the initial CBA was three years. Thereafter, the CBA was renegotiated [six times, but] not until the 1991 CBA [did it contain] a clause that expressly reserved the right of the company to amend or terminate the retiree medical plan." (EBIA Weekly)
Ruling Against HMOs Looks Familiar Excerpt: "History appears to be repeating itself from the bench of the Illinois Supreme Court when it comes to rulings with major implications for the nation's health-care industry. Last week, the state high court held that the doctrine of institutional negligence may be applied to health maintenance organizations." (Chicago Tribune)
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