Saturday, August 17, 2013

Company's Disability Insurance Is Not An Exempt "Church Plan"

In Story v. Aetna Life Insurance Co., (ND TX, Aug. 8, 2013), a Texas federal district court held that the disability insurance policy covering employees of Texas Health Resources is not a "church plan" that is exempt from ERISA. The court concluded that the most that had been shown was that Texas Health Resources  is a faith-based healthcare organization that takes religious principles into account in providing the health services it renders. It was not shown that its insurance plan was "established and maintained . . .. by a church or by a convention or association of churches" for its employees.