Successful Ruling for Pomerantz in Benefits Repayment Case Against Blue Cross & Blue Shield

On October 27, 2010, Pomerantz obtained a successul ruling from Judge Ronald R. Lagueux in Blue Cross & Blue Shield of Rhode Island v. Korsen,  2010 U.S. Dist. LEXIS 116175 (D.R.I. Oct. 27, 2010), where the court found that the effort by Blue Cross & Blue Shield of Rhode Island ("BCBSRI") to recoup health care benefits previously paid to two health care providers was "completely preempted" by the Employee Retirement Income Security Act of 1974 ("ERISA"), such that the case should proceed in federal court.

On January 19, 2011, the Court reaffirmed its decision in denying BCBSRI's motion for reconsideration or for leave to file an interlocutory appeal to the First Circuit. In upholding its prior decision, the Court noted that "because ERISA provides for equitable relief only, [BCBSRI] is no longer eligible for compensatory damages for the two preempted counts." This decision could have significant positive repercussions with regard to a class action pending in the Northern District of Illinois, where Pomerantz has sued a number of BCBS entities, including BCBSRI, on behalf of various providers, including the two providers in the Rhode Island action, for violating ERISA with regard to their repayment demands and recoupments of previously paid benefits. In that action, Judge Matthew F. Kennelly has previously upheld the ERISA claims in denying the defendants motion to dismiss. See Pennsylvania Chiropractic Association v. Blue Cross Blue Shield Association, 2010 U.S. Dist. LEXIS 49151 (N.D. Ill. May 17, 2010).