The risk retention group industry is hailing a seminal Supreme Court ruling Tuesday which held that self-insured group health plans are entitled to enforce the terms of their plans as written.
The court ruled unanimously in US Airways Inc. v. McCutchen that common principles of fairness and equity can't overrule specific contract language written by sponsors of a self-insured health plan.
However, four justices dissented on some procedural issues not central to the key issues in the case, says Bryan Davenport, an Indianapolis lawyer and specialist on subrogation issues, as well as a member of the Self-Insured Institute of America.
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