Riverside, California - The U.S. Department of
Labor obtained a court order requiring Riverside, California-based
Progressive Health Alliance (PHA) and Contractors & Merchants
Association (CMA) to comply with administrative subpoenas the department
issued requiring them to produce documents and records necessary to its
investigation of the two associations.
“This action sends a message that protecting plan
participants’ health care benefits is a high priority for the
department,” said Billy Beaver, director of the Los Angeles regional
office of the Employee Benefits Security Administration (EBSA), which is
investigating the case.
PHA and CMA are associations that recruit employers as
members to obtain health benefits for their employees. The companies were
subpoenaed by the department March 15 to provide documents relating to
their involvement with the benefit plans and any pending, unprocessed or
unpaid medical claims.
EBSA petitioned the court May 13 to enforce the
subpoenas when the companies failed to comply. In a ruling for EBSA, the court rejected the
companies’ arguments that producing the required documents would violate
their members’ privacy rights, and that the documents were not relevant
to the investigation. The ruling was issued June 21 by the Federal
District Court in Riverside.
In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to the pension, 401(k), health and other
benefits of millions of American workers and their families.
Employers and workers can reach EBSA’s Los Angeles
regional office at 626.229.1000 or through EBSA’s toll-free number,
1.866.444.EBSA (3272), for help with problems relating to private-sector
retirement and health plans.
(Chao v. Progressive Health Alliance and Contractors
& Merchants Association)
Civil Action No. EDCV 05-408-VAP (SGLx) |