Due to the sweeping implications of rulings by the United States District Court for the District of New Jersey, the failure of health-care providers to strengthen the language in their assignment of benefit forms may result in the outright surrender of their legal rights to recover reimbursements under the Employee Retirement Income Security Act. ERISA, a potent legal tool, permits providers to bring actions to recover benefits from intransigent insurance companies on behalf of patients or customers enrolled in most employee benefit plans.
Recent New Jersey federal court decisions have infused the mundane task of securing an assignment of insurance benefits with vital significance. Typically, a single sheet of paper tucked among HIPAA releases and patient information questionnaires, the assignment of benefits form, easily overlooked by health-care service and equipment providers, constitutes the foundation of a provider’s right to maintain derivative lawsuits for recovery of insurance benefits on behalf of their patients or customers.
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