Third Circuit Rules ERISA Bars Provider Defamation Suit Against Cigna Subsidiary

A three-judge panel of the U.S. Court of Appeals for the Third Circuit has ruled that since the Employee Retirement Income Security Act (ERISA) preempts state regulation of employee benefit plans, these plans can avoid libel, slander, or defamation lawsuits. In a recent case, the panel considered a case in which a doctor sued Cigna Health and Life Insurance Company for defamation based on explanation of benefits (EOB) notices sent to patients. 

The Cigna subsidiary at issue in this case administered employer-sponsored benefits plans. Dr. Jeffrey Ahn, a New Jersey board-certified ear, nose, and throat doctor, sued after the subsidiary sent out multiple EOB notices stating that Cigna had denied claims because they would not pay for services provided by unlicensed healthcare providers.