A three-judge panel of the U.S. Court of Appeals for the Third Circuit has ruled that since the Employee Retirement Income Security Act (ERISA) preempts state regulation of employee benefit plans, these plans can avoid libel, slander, or defamation lawsuits. In a recent case, the panel considered a case in which a doctor sued Cigna Health and Life Insurance Company for defamation based on explanation of benefits (EOB) notices sent to patients.
The Cigna subsidiary at issue in this case administered employer-sponsored benefits plans. Dr. Jeffrey Ahn, a New Jersey board-certified ear, nose, and throat doctor, sued after the subsidiary sent out multiple EOB notices stating that Cigna had denied claims because they would not pay for services provided by unlicensed healthcare providers.
In June 2025, a New Jersey federal district court granted a motion for summary judgment in favor of the Cigna subsidiary. That judge found that defamation is a state-law claim that ERISA preempts because it relates to matters central to ERISA plan administration, including communications to providers and patients about their insurance claims.
On appeal, the Third Circuit panel affirmed the federal district court’s ruling granting summary judgment in favor of the Cigna subsidiary. In that opinion, the panel acknowledged ERISA’s broad preemption of state law claims, including those claims based on EOB forms. Furthermore, the panel agreed with the Cigna subsidiary that allowing state defamation laws to affect the content of EOB notices would undermine the uniformity of plan administration.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
