DOL Fends Off Counterclaims in Health Insurance-for-Data Suit

A pair of vendors failed to prove the US Department of Labor is targeting them for their relationship with a company operating a controversial health plan, a federal Puerto Rico judge ruled.

The US District Court for the District of Puerto Rico on Wednesday dismissed counterclaims that Suffolk Administrative Services LLC and Providence Insurance Company I.I. filed in response to DOL’s lawsuit alleging the companies violated the Employee Retirement Income Security Act. The department argues the vendors are illegally pooling funds from separate employer plans and retaining “massive fees” in the process.

The dispute stems from Suffolk’s and Providence’s ...