Third Circuit Issues Important ERISA Reimbursement Decision

In its recent November 16, 2011 decision in the case of U.S. Airways v. McCutchen, 2011 WL 5557411 (3d Cir. 2011), the U.S. Court of Appeals for the Third Circuit just held that an insurer is not entitled to 100 percent reimbursement of paid medical expenses when an injured employee has recovered only a fraction of his damages from a third party.

Commentators have noted that, with this decision, the Third Circuit became the first court in the country to place clear limits on employer-based insurers' ability to recover medical expenses from injury victims.
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