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Release Date: March 28, 2006
Release Number: 06-477-SEA
Contact Name: Michael Shimizu
Phone Number: 206.553.7620
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
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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