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There is no question that subrogation and reimbursement cases can sometimes create tension between employees and employers, but the plan sponsor likely has a fiduciary duty to engage in activities that will ensure prudent management of plan assets, and ultimately, the financial viability of the plan. (Photo: Shutterstock)

Employers far and wide struggle with a very important decision; when offering a health benefit plan to its employees, should the plan engage in subrogation and reimbursement activities? Why would a plan/employer want to do, or not do, such a thing? Don’t subrogation and reimbursement negatively impact the very plan participants the plan is designed to benefit? Perhaps of even more concern, will employees of the company view this as the employer taking money from the employees? Or is there some bigger force at play that would encourage, perhaps even require, that a benefit plan engage in subrogation and reimbursement?

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