Categories: Fedweek

High Court Hears FEHB Case

The U.S. Supreme Court has heard arguments in one of the rare federal benefit cases it takes up, in this instance focusing on the proper forum for lawsuits involving certain reimbursements in the FEHB program. The case involves an FEHB carrier that paid benefits to an enrollee after an accident, then sought reimbursement after the by-then deceased enrollee’s estate collected on a settlement related to the accident, involving an outside party. The question before the high court in Empire Health Assurance Inc. v. McVeigh, 05-200, is whether such suits for reimbursement should be brought in federal or state court. Although the question is limited, the high court decision could set broader precedent regarding the relationship between federal and state law and the right to sue in the program.

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