Inaddition to diverting money for non-plan purposes, the companyallegedly used funds from one employer to pay claims on behalf ofanother. (Photo: Shutterstock)
When Advance Benefits Management Systems (ABMS) ceasedoperations in Georgia in April 2019, it left its clients with thebill for more than $7 million in unpaid health care claims. Now,the Department of Labor has filed a lawsuit against the company to recoupthat $7 million, as well as other costs and fees.
South Carolina-based ABMS acted as a plan administrator for some118 self-funded health plans. According to the lawsuit, ABMS'sfounder and president misappropriated both employer and employeecontributions, a violation of their fiduciary duty under ERISA. Inaddition to diverting money for non-plan purposes, the companyallegedly used funds from one employer to pay claims on behalf ofanother and failed to track payments among its employerclients.
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Emily Payne
Emily Payne is director, content analytics 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.
