On Tuesday, the US Supreme Court favored Liberty Mutual over Vermont healthcare law. The ruling says that Vermont cannot force health insurers to hand over data on the amount paid on medical claims and that such reporting requirements run against federal laws regulating the benefits of the employees.
National Law Review reported that the US Supreme Court decided 6-2, with Justices Ruth Bader Ginsburg and Sonia Sotomayor dissenting and Anthony Kennedy writing for the majority. The issue before the court involved Vermont data collection law requiring health insurers and certain entities to report payments that are related to health care claims and other information relating to health care services to a state agency for compilation in an all-inclusive health care database. Justice Anthony Kennedy underlined that the reporting, disclosure and record keeping are central to, and an essential part of federal law.
Administered by Blue Cross Blue Shield of Massachusetts, Liberty Mutual Insurance Co. runs a self-funded plan and had challenged a request made under the law. The ruling is likely to put limits on similar laws in 17 other states in the US, says Reuters. The court's decision was one of two issued on its first day of rulings since the death of Justice Antonin Scalia on February 13. Liberty Mutual claims that the Employee Retirement Income Security Act of 1974 or ERISA law exempted it from such requirements.
While Liberty Mutual told reporters that they were pleased with the decision, the company declined to comment further. Meanwhile, Al Gobeille, chairman of the Green Mountain Care Board, was disappointed. Although Gobeille said it wasn't a significant setback, since most insurers have been providing the requested date voluntarily, as reported by The Wall Street Journal.
According to the American Benefits Council, self-funded plans provide insurance for 93 million citizens in the US. President Barack Obama's administration has been known to be a supporter of Vermont in the case.
