U.S. Labor Department Obtains Settlement for Boise, Idaho Health Plan

Archived News Release — Caution: Information may be out of date.

Boise, Idaho - The U.S. Department of Labor has obtained a settlement that will protect the medical benefits of participants in a health plan sponsored by Employers Resource Management Company (ERM) of Boise, Idaho.

"Benefit promises must be kept,” said Ann L. Combs, Assistant Secretary of Labor for the Labor Department’s Employee Benefits Security Administration (EBSA). “This settlement ensures that the plan’s assets will be available to pay the health benefits that workers rely upon.”

The settlement, filed in federal district court in Idaho, requires that ERM maintain a minimum level of reserves to pay medical claims and hire qualified professionals to annually compute the amount the claims reserves must hold. The settlement also provides that ERM must forward employer and employee premiums to the health plan in a timely manner, hold health plan assets in trust, and use the assets only to pay proper claims and expenses. In addition, ERM agreed to invest the plan’s assets prudently and reimburse itself only for direct expenses permitted under federal law.

The settlement resolves a lawsuit alleging violations of the Employee Retirement Income Security Act in the management of the self-funded health plan. In a separate mediation settlement with the Labor Department, ERM contributed $588,000 to date to fund a claims reserve. The case resulted from an investigation conducted by EBSA’s Seattle district office. In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Employers and workers can contact the Seattle district office at 206.553.4244 or EBSA’s toll free number 1.866.444.EBSA (3272) for help with any problems relating to private-sector pension and health plans.

(Chao v. Employers Resource Management Company, Inc.)
Docket No. CV 02-12-S-EJL

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Archived News Release — Caution: Information may be out of date.

Contact Name: Michael Shimizu
Phone Number: 206.553.7620