|
|
|
Release Date: 05/06/2004
Release Number: 50 (04-717-SAN)
Contact Name: Tino Serrano
Phone Number: 415.975.4742
|
Printer Friendly
Version
|
|
|
|
San Francisco, California - The U.S. Department
of Labor has obtained a consent judgment appointing an independent
fiduciary to take over administration of the health plan of a defunct West
Hills-based union. The department sued the president of the International
Union for Natural Health, Alternative and Complementary Medicine
Professions (IUNHCAMP) and three plan trustees for mismanagement that
resulted in an estimated $7 million in unpaid health care claims. |
The
judgment, entered in U.S. District Court in Los Angeles, settles the
November 2003 suit that alleged that IUNHCAMP president Steven Gorman and
the plan trustees violated the Employee Retirement Income Security Act (ERISA).
The defendants allegedly failed to charge health plan participants
adequate premium rates and to implement appropriate medical underwriting
guidelines. The suit also alleged that Gorman’s involvement with the
IUNHCAMP health benefits plan violated a September 2000 court order
barring him from any fiduciary involvement with any employee benefit plan
subject to ERISA. |
Plan
trustees named as defendants included: Henry Golden of West Hills, Willard
Green of Virginia and Jeffrey Langlois of Wisconsin. The judgment
permanently bars all defendants from positions as fiduciary of any plan
covered by ERISA. |
Shortly
before the health plan ceased operations, it was providing medical and
dental benefits to approximately 4,500 participants in California, New
York, Washington, Alaska, Georgia, Florida, Alabama, Arkansas, Texas,
Tennessee and Vermont. |
|
On February 9, 2004, the court issued a final order and
judgment in a separate, private class action suit filed by former
participants in the IUNHCAMP Health and Welfare Trust awarding a $6
million judgment against Golden, Green and Langlois. The former plan
participants are litigating against the trustees’ fiduciary liability
insurance to recoup policy proceeds to pay the unpaid claims. |
The
Los Angeles office of the U.S. Labor Department’s Employee Benefits
Security Administration (EBSA) investigated the case. Employees may
contact EBSA if they are unable to get timely responses from their plan
administrator regarding payment of claims. Employers and workers can reach
EBSA at 626.229.1000 or through EBSA's toll-free number, 1.866.444.EBSA
(3272), for information and assistance relating to private-sector pension
and health plans. |
(Chao
v. IUNHCAMP)
Civil Action No. 03-8422 |
|
U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
