Benefits & Executive Compensation News

Sovereign Health Suit Set for Trial After Partial Settlement

Oct. 9, 2019, 2:38 PM

Sovereign Health and Allied Benefits Systems Inc. settled a class action involving Sovereign’s health plan, but claims against two individual defendants are set for trial later this month, according to court filings in the Central District of California.

The lawsuit centers on Sovereign’s health plan, which is funded by the company and not through an insurance contract with a third-party insurer. Workers say Sovereign stopped funding the plan in 2017 while still deducting plan contributions from their paychecks, leaving more than $1.1 million in unpaid medical bills.

Sovereign and Allied, which served as the plan’s claims administrator, settled all claims...

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