U.S. Supreme Court Declines SIIA’s ERISA Preemption Appeal

ERISA Preemption Landscape Remains Unsettled

January 17, 2017 – The U.S. Supreme Court has declined to accept SIIA’s appeal challenging an appellate court’s ruling affirming that federal law does not preempt the Michigan Health Insurance Claims Assessment Act.

SIIA had contended that the so-called “HICA tax” should be preempted by the Employee Retirement Income Security Act (ERISA) because it imposed intrusive record-keeping and reporting requirements on self-insured group health plans.

The practical effect of the Supreme Court’s decision not to accept SIIA’s appeal is that the ERISA preemption landscape remains unsettled as the Court confirmed a broad interpretation of ERISA preemption in a similar case ruled on last year.

SIIA will continue to monitor state legislative/regulatory developments that may trigger ERISA preemption concerns and take appropriate action to protect the business interests of its members. Lastly, SIIA would like to thank all members who made voluntary contributions to the association’s Legal Defense Fund, which enabled this important legal challenge.