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1 1 (January 28, 2003)

handle is hein.crs/crsahpb0001 and id is 1 raw text is: Order Code RS20868 Updated January 28, 2003 CRS Report for Congress Received through the CRS Web Employer Liability Provisions in Selected Patient Protection Bills Angie A. Welborn Legislative Attorney American Law Division Summary The liability of a self-insured employer in state court for group health plan related actions is generally preempted by ERISA. However, an employer who acts as the administrator of the health plan can be liable for breach of fiduciary duty under ERISA.1 Some federal courts have also found self-insured employers liable under theories of vicarious liability and direct negligence.2 The extent to which employers can be found liable in any of these situations varies depending on the employer's level of participation in the administration of the plan and the plan's decision making process regarding claims for benefits. In the various patient protection bills introduced in the 106'h and 107th, Congress attempted to address the issue of employer liability by limiting liability to certain persons or circumstances. While both the House and Senate passed patient protection legislation in the 107'h Congress, no agreement was reached with regard to the liability provisions in the bills and neither was sent to the President. This report provides an overview of the employer liability provisions of selected bills from both the 106th and 107'h Congress, and will be updated as events warrant in the 108'h Congress. In both the 106'h and 107th Congress legislation seeking to amend the Employee Retirement Income Security Act of 1974 (ERISA) to allow state or federal causes of action against group health plans for personal injury or wrongful death was introduced. Currently, ERISA preempts any and all State laws insofar as they may now or hereafter 1 See Hamilton v. Allen-Bradley Company, 217 F.3d 1321 (11th Cir. 2000). 2 Damon Henderson Taylor, ERISA Preemption: Will the Elimination of the ERISA Preemption Clause Help or Harm America's Ability to Deal with Its Pending Health Care Crisis?, 14 J.L. & Health 133, 160 (2000). See Cooney v. South Central Bell Telephone Company, 1992 WL 46381 (E.D. La.), Civ. A. No. 91-3870. Congressional Research Service **o The Library of Congress

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