Read the Fine Print: When an ERISA Plan Preempts State Law

This case clarifies the question of preemption when an insurer is assigned to a claim through MACP and seeks a reduction of benefits payable pursuant to MCL 500.3172(2) in situations where a self-funded ERISA plan contains a coordination of benefits clause.

To preempt a state law on a coordination of benefits issue, the ERISA plan must be both (1) self√¢‚Ǩ‚Äòfunded, and (2) contain an unambiguous coordination of benefits clause. American Med Security, Inc v Allstate Ins Co, 235 Mich App 301, 305 (1999); Auto Club Ins Ass’n v Frederick & Herrud, Inc (After Remand), 443 Mich 358, 383-384 (1993), citing Fed Kemper Ins Co, Inc v Health Ins Admin, Inc, 424 Mich 537, 546 (1986).

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