Iowa High Court Denies Reconsideration in Preemption Case

DES MOINES, Iowa - The Iowa Supreme Court on Aug. 28 refused to reconsider its ruling that the federal Employee Retirement Income Security Act of 1975 does not preempt a state regulation allowing for "always secondary" policies. Magellan Health Services Inc. v. Highmark Life Insurance Co., No. 81/05-1853 (Iowa Sup. Ct.).

The ruling, issued May 30, allows Magellan Health Services Inc. to seek reimbursement for some of the $919,596 at issue from its reinsurer, Highmark Life Insurance Co.

Magellan provided coverage for "John Doe" under a policy issued to his father and administered by CareFirst of Maryland Inc. John …