Not Enough Settlement to Pay Bills
I represent a two-year old kid who was hit by an SUV. Only $25,000 in coverage, which has been tendered. Erisa health plan covered medical bills and has about $12,000 in subrogation but will not reduce. Parents paid other providers out-of-pocket and, I think, are entitled to reimbursement. This leaves only about $600tokid which Judgewill not allow and has ordered us tointerplead.Canthejudge cutouttheERISA subrogation?
Answer: If the ERISA plan says they don’t have to reduce, I don’t think the Judge can make them do it. However, I would prefer, if I were you, to let the ERISA plan tell the Judge that. I’d interplead it and let the ERISA plan make the call whether to remove it to federal court and litigate it. You never know what they will do confronted with the choice.
Posted on Sun, September 26, 2010
by Sharon Coleman