What is ERISA?
ERISA stands for Employee Retirement Income Security Act.
ERISA is governed by Federal legislation (U.S. Code Title 29, Chapter 18, associated Internal Revenue Code and miscellaneous provisions) that preempts state regulation of workers’ medical and pension benefits.
ERISA, is an insurance program established to guarantee that employees receive their pension benefits in the event that a pension plan is terminated. However, the legislation is very complex and claims are limited to the amount of the benefit being claimed.
Many employees have been taken advantage of by unscrupulous employers, despite the name and the purpose. It has had a serious effect on people who receive their insurance through their employment. Often these claims are not evaluated fairly or paid properly. The hardship is mostly felt in the areas of disability claims, health, life insurance, since this insurance is typically provided through work.
If you have an ERISA claim that has been denied and want to discuss your rights under the appeal process, us today for a free initial consultation.
Litigating ERISA Claims
When an Insurance claim has been denied, the stiffest penalty to the insurance company from the court is to be forced to pay the claim that was denied. This leaves the field wide open for insurance companies not to play fair or make proper payments on ERISA claims.
Since most ERISA claims are litigated in Federal Court, they have a few things in common. There is an administrative appeal process that must be followed prior to going to court. If the claimant does not follow the proper appeal procedure, they may forfeit their right to sue the insurance company. This can be avoided by having an experienced ERISA claims lawyer handling the claim and appeals process.