Man pulling cash out of a jar. In addition to diverting money for non-plan purposes, the company allegedly used funds from one employer to pay claims on behalf of another. (Photo: Shutterstock)

When Advance Benefits Management Systems (ABMS) ceased operations in Georgia in April 2019, it left its clients with the bill for more than $7 million in unpaid health care claims. Now, the Department of Labor has filed a lawsuit against the company to recoup that $7 million, as well as other costs and fees.

South Carolina-based ABMS acted as a plan administrator for some 118 self-funded health plans. According to the lawsuit, ABMS’s founder and president misappropriated both employer and employee contributions, a violation of their fiduciary duty under ERISA. In addition to diverting money for non-plan purposes, the company allegedly used funds from one employer to pay claims on behalf of another and failed to track payments among its employer clients.

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Emily Payne

Emily Payne is the current deputy editor for ALM's Business & Finance Markets and former managing editor for BenefitsPRO. A Wisconsin native, she has spent the past decade writing and editing for various athletic and fitness publications. She holds an English degree and Business certificate from the University of Wisconsin.

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