BC Advantage - 2006 Issue 9

ERISA vs State Law

At issue is a State's Assignment of Benefit law that requires the insurance company to honor the AOB and send payment to the provider.  Our favorite insurance company, BCBS was not honoring the AOB and was sending payment to the member.  Their reason was that their plans were ERISA plans, therefore ERISA superseded State law.  These hospitals in question terminated their contracts with BCBS.  As we all know, BCBS sends payment to their member when a non-par provider is involved.  BCBS cited the Aetna v Davila Supreme Court Case ruling that ERISA supersedes any...

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