Seminar Question, Made Whole Rule & ERISA Plans

Posted by Elizabeth Vish Schad

Question:
I wanted clarification on the application of the Made Whole rule to ERISA plans. Am I correct that the Made Whole rule is not applicable period to a self-funded plan? The Made Whole applies in those circuits that have adopted it as a default rule only to insured plans?

-California Attorney

Answer:
The Made Whole Doctrine is applicable to both self-funded and insured plans subject to controlling laws and/or decisions. For example, if you have a self-funded plan in a circuit that has adopted the Made Whole Doctrine and the plan's language does not abrogate the doctrine as prescribed by the controlling decision and the client was NOT made whole, the MWD applies.