A plan approved by the U.S. District Court for the Northern District of Illinois is set to come into force to distribute $12 million to medical providers and plan participants affected by a multi-million dollar receivership case.
On October 29, 2024, the federal court found AEU Holdings, Black Wolf Consulting, and Veritas PEO Plan knowingly defrauded healthcare providers and plan holders by underfunding the multiple employer welfare arrangement (MEWA). Receivership Management Inc. is the MEWA’s court-appointed independent fiduciary.
Since then, the $83 million in health claims wrongly billed by AEU Holdings, Black Wolf Consulting, and Veritas PEO Plan have been a key topic for the Employee Benefits Security Administration.
Solicitor of Labor Seema Nanda said, “AEU Holdings, Black Wolf Consulting, and Veritas PEO mismanaged the plan and left it severely underfunded. The final distribution plan approved by the court brings long-awaited financial relief to beneficiaries and medical providers. It shows we will take all actions needed to prevent employers, participants, and beneficiaries from being bilked out of their healthcare benefits.”
Court rules on healthcare receivership case
According to a report by the Department of Labor, the “independent fiduciary (Receivership Management Inc. will) distribute an additional $9.4 million to medical providers who accepted the interim payment and distribute $2.7 million directly to plan participants whose medical providers refused to accept the interim payment. Plan participants can use these amounts towards satisfying unpaid claims for medical providers who did not accept the interim payments.”
It was recorded that the MEWA, at its height, covered approximately 14,000 participants and beneficiaries from over 560 employers in 36 different states.
“The egregious violations of the Employee Retirement Income Security Act by AEU Holdings, Black Wolf Consulting, and Veritas PEO left plan participants with unpaid claims and jeopardized their access to healthcare, causing great harm,” said Assistant Secretary for Employee Benefits Security Lisa M. Gomez. “The Employee Benefits Security Administration is committed to ensuring plan participants and beneficiaries receive the benefits they have earned.”
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