Third-Party Health Plan Administrator Sued by Labor Department

A new Labor Department lawsuit accuses Georgia-based Tru Blue Third Party Administrators LLC of mismanaging more than 50 employer-sponsored health plans by improperly commingling the plans’ assets and failing to ensure that all claims were paid.

The lawsuit is fallout from the 2019 collapse of Advance Benefit Management Systems USA Inc., a plan administrator that recently agreed to pay more than $700,000 to resolve the department’s allegations of mismanagement and misappropriation of funds.

According to the department, Tru Blue was co-founded by Advance’s former president and was “unilaterally selected” to be the new third-party administrator for dozens of plans without ...