Benefit brokers and advisers who do business with third-party administrators (TPAs) need to be on their guard in the wake of a significant legal decision late last month.
TPAs that control and profit from group health plan assets are fiduciaries under ERISA, according to a ruling by the U.S. Court of Appeals for the Sixth Circuit that reinstated fiduciary breach claims against a Michigan Blues plan. The case spotlights the importance of pricing transparency in TPA contracts with self-insured employers.
