Department of Labor Issues New Disability Claims Regulations Under ERISA Affecting Disability Claims Filed in 2018

In December 2016, the U.S. Department of Labor issued its Final Rule for new regulations applicable to the way in which employers administer their employees’ claims for disability under the Employment Retirement Income Security Act (ERISA). The changes went into effect on January 1, 2017, but in order to give employers time to make the required adjustments to their claims processing procedures, the new rules will apply only to claims submitted on or after January 1, 2018. Any plan that offers disability benefits must comply with the new regulations. They apply to plan administrations for both short term and long term disability benefits. This will add additional protection to employees who become disabled and need to file a disability claim. The current regulations are much more favorable to employers and insurance companies giving them the upper hand with no recourse when claims are unfairly denied. The new regulations provide additional assurance that the claims handling process is handled more fairly. Unfortunately, the new regulations will not do away with unfair claims review practices, but it is a step in the right direction.

Claims Adjudication Must Be Free of Conflicts of Interest

Individuals involved in the claims evaluation process must act totally independent from the plan. The plan cannot make any employment decisions, including hiring, firing or promoting, based on the likelihood of the employee making decisions denying benefits. All independent contractors must remain independent and their decisions must not reflect any conflict of interest. A claims adjustor cannot be paid bonuses based on the number of claims that are denied. One would hope all of these regulations are already in place. Unfortunately that is not always the case as claims are being denied by individuals who clearly have self-interest in denying the claims. As of 2018, these self-serving denials should diminish as there are now consequences for these improper and biased denials of claims.

New and Improved Disclosure Requirements

• Benefit denials must provide full and detailed information concerning all of the reasons for the denial. If the denial of benefits conflicts with a decision granting benefits by the Social Security Administration (SSA), the plan must articulate the reasons for its differing opinion. There is no requirement for the administrator to discuss why its decision may be different from that of another third party payer.

• If the denial is in conflict with the opinion of a treating health care professional, including a vocational professional, whose opinion was relied upon by the claimant, the plan administrator must explain the basis for its differing opinion. Insurance companies were not required to provide this explanation in the past and would often just state that the peer review physician disagreed with the treating physician and therefore the claim was denied. This will no longer be permitted without consequence.

• If the decision to deny benefits is in conflict with any recommendation of any expert hired by the plan to evaluate the claim, the plan must explain why it did not rely on those reports.

• Claimants have a right to access their entire claims file, including all documents relied upon by the administrator in denying benefits. The written denial of benefits must inform the claimant of this right.

• The plan must disclose the internal rules, guidelines and protocols it used in evaluating benefit claims. If none were used, the plan must also disclose this.

Claimants Rights on Appeal

The plan must provide claimants, free of charge, access to any new evidence presented on appeal. This includes copies of any document and report relied upon by the plan when it denied the claim for benefits.

Denial of Claim Must Include Information About Time Limitations

In its notice of an adverse benefit decision after review, the plan must inform claimants of their rights to bring a civil court action according to ERISA law. The notice must include a description of the contract provisions articulating time limits by which a lawsuit must be filed and a specific date upon which the time limit expires. This is a very import regulation, as most laypersons are not aware of the time limits to file suit as they are different in each state and are usually spelled out in the policies that are often not provided to the claimants.

If you have a disability claim, no matter what stage you may be at in the process, feel free to contact attorneys at Dell & Schaefer for a free consultation.

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FAQ

Do you work in my state?

Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.

What are your fees?

Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.

The three available fee options are a contingency fee agreement (no attorney fee or cost unless we make a recovery), hourly fee or fixed flat rate.

In every case we provide each client with a written fee agreement detailing the terms and conditions. We always offer a free initial phone consultation and we appreciate the opportunity to work with you in obtaining payment of your disability insurance benefits.

Do I have to come to your office to work with your law firm?

No. For purposes of efficiency and to reduce expenses for our clients we have found that 99% of our clients prefer to communicate via telephone, e-mail, fax, GoToMeeting.com sessions, or Skype. If you prefer an initial in-person meeting please let us know. A disability company will never require you to come to their office and similarly we are set up so that we handle your entire claim without the need for you to come to our office.

How can I contact you?

When you call us during normal business hours you will immediately speak with a disability attorney. We can be reached at 800-682-8331 or by email. Lawyer and staff must return all client calls same day. Client emails are usually replied to within the same business day and seem to be the preferred and most efficient method of communication for most clients.

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ShaRhonda D.

Rachel Alters and her assistance Michal Mizrahi were a godsend. When I contacted their office, Metlife denied my appeal and I was too sick to get out of bed, let alone try and fight the a giant insurance company! I was so lost and confused, I had all of my doctor’s saying I was disabled, I was taking the medication for my disability, Metlife said they covered my illness in their policy, so I couldn’t understand what the problem was! Further more, I didn’t have the energy to try and figure it out on my own.

Luckily, I didn’t have to. From the first day I spoke with Rachel, she was my David verses my Goliath, MetLife. Having her represent me was the best thing that could have ever happened for my family. She took over all correspondence with Metlife and her team answered ALL of my questions thoroughly and promptly. They were professional, courteous, and best of all, they understood how to fight Metlife and win.

Because of Rachel’s hard work with MetLife, I was able to focus my energy back on my family and trying to heal instead of answering stupid questions and jumping through bureaucratic hoops. My settlement was above and beyond my expectation and I am so grateful that I had such an ally in Rachel Alters.

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