Employers use federal law to deny benefits

[GooeyGUI]

WTF?

Text

WASHINGTON - Dying of cancer, Thomas Amschwand did everything he was told to make sure his wife would collect on the life insurance policy he had through his employer.

"He was obsessed with dotting every `i' and crossing every `t'," Melissa Amschwand-Bellinger recalled about her husband, who died in 2001 at age 30.

But Spherion Corp., the temporary staffing company where Amschwand worked, told Amschwand-Bellinger she would not receive any of the $426,000 in benefits she believed she was due. When she went to court, Spherion succeeded in getting her lawsuit thrown out. The Supreme Court on June 27 refused to review the case.

Amschwand-Bellinger received a refund of the few thousand dollars in insurance premiums she and her husband dutifully had paid. The total, she said, would not cover the costs of his funeral.

The story has played out often under the federal Employee Retirement Income Security Act. Designed to protect employee benefits, the law has been used by employers as a shield against suits.

Federal appeals courts, interpreting Supreme Court decisions dating to 1993, consistently have said companies that offer health, life and retirement benefits under ERISA cannot be sued for large amounts of money, or damages. Instead, they can be sued only for typically smaller sums such as Amschwand's insurance premiums.

Several federal judges have bemoaned the unfairness even as they have felt constrained to rule in favor of employers.

"The facts ... scream out for a remedy beyond the simple return of premiums," Judge Fortunato Benavides of the New Orleans-based 5th U.S. Circuit Court of Appeals said in the Amschwand case. "Regrettably, under existing law it is not available."

The Bush administration has argued that the appeals courts are misreading the precedents and has asked the high court at least twice to clarify the earlier rulings. So far it has refused.

Congress, which could amend ERISA to make clear such suits are allowed, also has taken no action.

The result, in the view of ERISA experts, the administration and some lawmakers, is perverse.

"The beneficiary under the policy didn't get the promised benefit," said Colleen Medill, an expert on ERISA at the University of Nebraska-Lincoln. "To say we're just going to return your premiums, that's a total farce. That's not what they paid the premiums for. They paid them for the benefits."

Sen. Patrick Leahy, chairman of the Senate Judiciary Committee, said at a recent hearing that before ERISA became law, employees clearly could sue for benefits in state courts.

The court rulings, said Leahy, D-Vt., have left people "more vulnerable than they were before the law was passed."

Spherion's decision to deny benefits to Amschwand-Bellinger turned on an odd set of facts. Spherion, which employs about 300,000 people, switched insurers after Thomas Amschwand was diagnosed with a rare form of heart cancer. The new policy did not take effect until an employee worked one full day. Spherion never informed Amschwand of the requirement.

Amschwand asked repeatedly whether there was anything else he needed to do and was told no. He asked that the new policy be sent to him. Spherion never did so.

He died without returning to work. His widow said he easily could have worked a day if that was what it took to activate the new policy. Spherion could have waived the one-day-of-work provision, as it did for other employees but not for Amschwand.

Spherion spokesman Kip Havel issued a brief statement when contacted by The Associated Press after the high court declined to review the case. "We are pleased the court has made its decision and the matter has finally been resolved," Havel said.

 

[HannibalX]

That is a sad story indeed.

I have always been cautious about receiving benefits from my employer because they always seem to be up to something shady.

I have life insurance and long term care insurance through my own insurance company. The only benefits I get from work are basic medical, vision and dental. I don't even let them handle my pension/retirement money.

 

[BUTCH1]

Wow, not only is the woman saddled with the loss of her husband but to get
ripped like that by his employer. I hope she appears at Spherion with a loaded
shotgun and blows the CEO's head off...

 

[olds]

Anyone let the Mods know P&N was down/closed?

 

[Specop 007]

Originally posted by: GooeyGUI

WTF?

Text

WASHINGTON -

The Bush administration has argued that the appeals courts are misreading the precedents and has asked the high court at least twice to clarify the earlier rulings. So far it has refused.

Congress, which could amend ERISA to make clear such suits are allowed, also has taken no action.

So the Republicans want clarification and the Democrats have done nothing?

I confess, I AM a bit shocked since this is in regards to "helping the little guy".

 

[woodie1]

Originally posted by: oldsmoboat
Anyone let the Mods know P&N was down/closed?

At least the OP didn't place the blame for this on the wrong people.

 

[benzylic]

Originally posted by: woodie1

Originally posted by: oldsmoboat
Anyone let the Mods know P&N was down/closed?

At least the OP didn't place the blame for this on the wrong people.

Someone will come in here and somehow blame Bush........where's Harvey?

 

[Specop 007]

Originally posted by: mxrider

Originally posted by: woodie1

Originally posted by: oldsmoboat
Anyone let the Mods know P&N was down/closed?

At least the OP didn't place the blame for this on the wrong people.

Someone will come in here and somehow blame Bush........where's Harvey?

Or dmcowen.

 

[Engineer]

Originally posted by: Specop 007

Originally posted by: GooeyGUI

WTF?

Text

WASHINGTON -

The Bush administration has argued that the appeals courts are misreading the precedents and has asked the high court at least twice to clarify the earlier rulings. So far it has refused.

Congress, which could amend ERISA to make clear such suits are allowed, also has taken no action.

So the Republicans want clarification and the Democrats have done nothing?

I confess, I AM a bit shocked since this is in regards to "helping the little guy".

And the Republicans did what to fix this from 2001 up until 2006? Both sides at work here...you can spin it towards the Democrats the the GOP has done nothing...and that's even when they had control of both chambers of Congress as well as the President. Now neither side has done nothing. I suspect since this has made the news, it will be corrected (or at least should).

 

[dartworth]

I blame John McCain...

 

[GooeyGUI]

Sorry, didn't know there was a different place for news. Things must have changed?

Anyway, I was thinking along the lines of the first reply rather than politics.

 

[mugs]

Originally posted by: Engineer

Originally posted by: Specop 007

Originally posted by: GooeyGUI

WTF?

Text

WASHINGTON -

The Bush administration has argued that the appeals courts are misreading the precedents and has asked the high court at least twice to clarify the earlier rulings. So far it has refused.

Congress, which could amend ERISA to make clear such suits are allowed, also has taken no action.

So the Republicans want clarification and the Democrats have done nothing?

I confess, I AM a bit shocked since this is in regards to "helping the little guy".

And the Republicans did what to fix this from 2001 up until 2006? Both sides at work here...you can spin it towards the Democrats the the GOP has done nothing...and that's even when they had control of both chambers of Congress as well as the President. Now neither side has done nothing. I suspect since this has made the news, it will be corrected (or at least should).

And it's not like you need to be a member of the majority party to introduce a bill...

 

[olds]

Originally posted by: GooeyGUI
Sorry, didn't know there was a different place for news. Things must have changed?

Anyway, I was thinking along the lines of the first reply rather than politics.

Welcome to ATOT. It's NEVER what you expect.
Please fasten your seat belt and keep you hands inside the window at all times.

 

[GoingUp]

Techs already chimed in...

Originally posted by: Techs

Yes, once again the corporations with their government lackeys have found a way to cheat the working classes of America.
How long will we let the Republicans and their Supreme Court judges continue to take every opportunity to screw us?

http://forums.anandtech.com/me...=2204305&enterthread=y

 

[Engineer]

Originally posted by: mugs

And it's not like you need to be a member of the majority party to introduce a bill...

I never stated anything like that either. I said shame on BOTH sides. I didn't solely point to one side. To point out one side, when the other side held full power for a decade and full Congressional power for a decade, is complete hypocracy.

I don't care which side you are on...but blame them BOTH in this shameful situation.

 

[mugs]

Originally posted by: Engineer

Originally posted by: mugs

And it's not like you need to be a member of the majority party to introduce a bill...

I never stated anything like that either. I said shame on BOTH sides. I didn't solely point to one side. To point out one side, when the other side held full power for a decade and full Congressional power for a decade, is complete hypocracy.

I don't care which side you are on...but blame them BOTH in this shameful situation.

I was agreeing with you.

 

[Bignate603]

This is ridiculous. I would sue Spherion itself for misinformation.

 

[Engineer]

Originally posted by: mugs

Originally posted by: Engineer

Originally posted by: mugs

And it's not like you need to be a member of the majority party to introduce a bill...

I never stated anything like that either. I said shame on BOTH sides. I didn't solely point to one side. To point out one side, when the other side held full power for a decade and full Congressional power for a decade, is complete hypocracy.

I don't care which side you are on...but blame them BOTH in this shameful situation.

I was agreeing with you.

Oh, sorry. I thought that you were accusing me of leaning toward one party or another when both are at fault. Again, my apologies! 😱

 

[Bateluer]

I only read the OP's post, not the rest of the thread. I seriously hope someone busts in their corporate offices with a shotgun.

 

[Baked]

America, fuck yeah. :disgust:

 

[dmcowen674]

Originally posted by: Specop 007

Originally posted by: mxrider

Originally posted by: woodie1

Originally posted by: oldsmoboat
Anyone let the Mods know P&N was down/closed?

At least the OP didn't place the blame for this on the wrong people.

Someone will come in here and somehow blame Bush........where's Harvey?

Or dmcowen.

Who else has been making laws for the last 7 years that do the opposite of the name of the law? 😕

 

[danzigrules]

Originally posted by: oldsmoboat
Anyone let the Mods know P&N was down/closed?

never the smart ass are ya?

 

[woodie1]

Originally posted by: dmcowen674

Originally posted by: Specop 007

Originally posted by: mxrider

Originally posted by: woodie1

Originally posted by: oldsmoboat
Anyone let the Mods know P&N was down/closed?

At least the OP didn't place the blame for this on the wrong people.

Someone will come in here and somehow blame Bush........where's Harvey?

Or dmcowen.

Who else has been making laws for the last 7 years that do the opposite of the name of the law? 😕

I thought any member could propose a law, not just one party or the POTUS. When did this change? Have you a link showing that anyone has introduced a change to this horrible law since its inception and court ruling?

 

[dmcowen674]

Originally posted by: woodie1

Originally posted by: dmcowen674

Originally posted by: Specop 007

Originally posted by: mxrider

Originally posted by: woodie1

Originally posted by: oldsmoboat
Anyone let the Mods know P&N was down/closed?

At least the OP didn't place the blame for this on the wrong people.

Someone will come in here and somehow blame Bush........where's Harvey?

Or dmcowen.

Who else has been making laws for the last 7 years that do the opposite of the name of the law? 😕

I thought any member could propose a law, not just one party or the POTUS. When did this change? Have you a link showing that anyone has introduced a change to this horrible law since its inception and court ruling?

Why bother when you know it will not even make it out of committee?

 

[woodie1]

Originally posted by: dmcowen674

Originally posted by: woodie1

Originally posted by: dmcowen674

Originally posted by: Specop 007

Originally posted by: mxrider

Originally posted by: woodie1

Originally posted by: oldsmoboat
Anyone let the Mods know P&N was down/closed?

At least the OP didn't place the blame for this on the wrong people.

Someone will come in here and somehow blame Bush........where's Harvey?

Or dmcowen.

Who else has been making laws for the last 7 years that do the opposite of the name of the law? 😕

I thought any member could propose a law, not just one party or the POTUS. When did this change? Have you a link showing that anyone has introduced a change to this horrible law since its inception and court ruling?

Why bother when you know it will not even make it out of committee?

You honestly think that?