Humana, as a third party service provider to an ERISA benefit plan, cannot sue under the Act to recover funds paid out, since it was not an ERISA fiduciary, the Fifth Circuit ruled on Monday. Rather, under the plan management agreement, Humana's role was simply ministerial, more akin to a lawyer or collections agent.
Humana and API entered into a plan management agreement whereby Humana would administer API's employee benefits plan. Under the PMA, API was to retain decisionmaking control over all discretionary decisions, with Humana acting within the framework of the plan's management policies. The limited discretion Humana had, even under the agreements broad subrogation terms, kept it from being treated as a true ERISA fiduciary, the Fifth Circuit found.