Blue Cross Minnesota Denied Appeal in Labor Department Tax Suit

Blue Cross Blue Shield of Minnesota failed to secure an immediate appeal of a decision greenlighting US Labor Department litigation challenging the company’s collection of a state “provider tax” from its self-funded health plan clients.

Blue Cross requested a quick appeal that would allow the US Court of Appeals for the Eighth Circuit to consider whether the Employee Retirement Income Security Act’s fiduciary duties apply to a third-party plan administrator that pays claims out of its own funds and is later reimbursed by the plan. Judge John R. Tunheim of the US District Court for the District of Minnesota ruled ...