Texas Court Holds That ERISA Preempts State Insurance Laws

OPEN MINDS The Behavioral Health & Social Service Industry Analyst

Industry News

The Texas Supreme Court recently made a ruling that effectively preempts any litigation under state laws for claims against employee health insurers organized under the federal Employees’ Retirement Income Security Act (ERISA). The ruling, which follows a similar 1987 U.S. Supreme Court decision, prevents employees from recovering any damages beyond the amount of insurance coverage, and in some cases, attorneys’ fees, according to a report in the February 4, 1991 issue of The Wall Street Journal</em . . .