In May, we warned former members of Affiliated Physicians and Employers Master Trust d/b/a Members Health Plan NJ (“APEMT Trust” or the “Trust”) that the Trust was preparing to sue them for outstanding assessments allegedly owed, plus a thirty-percent markup for attorney fees.[1] On July 5, 2022, the Trust made good on its threat, filing suit against thirty members or former members. A copy of the Complaint may be found here.
The APEMT Trust is a self-funded multiple employer welfare plan, which is funded by participating employers, or members, to pay medical claims for the members’ employees and dependents. Part of the members’ obligations while participating in the Trust is to be responsible for a percentage of the liabilities incurred by the Trust for unpaid medical claims. According to APEMT, in the latter half of 2020, because the “COVID-19 crisis [had] beg[u]n to accelerate, APEMT was advised by its professionals that increased and unforeseen COVID-19 testing caused APEMT to suffer a shortfall in its statutory reserves.” Complaint at ¶36. Thereafter, “[b]etween May 6, 2021, and May 24, 2021, APEMT attempted to persuade [the] NJ [Department of Banking and Insurance (“DOBI”)] . . . to work with them to recapitalize APEMT and avoid a ‘wind down.’” Id. at ¶37. When these efforts failed, the APEMT Trust filed Chapter 11 bankruptcy on or about May 24, 2021. Id. at ¶38.
In connection with this proceeding, the APEMT determined to issue assessments to all members and former members “so that APEMT could pay all outstanding claims and expenses of APEMT[, which amount] . . . was calculated based on 7.5% of healthcare coverage fees for the period of January 1, to July 31, 2021.” Id. at ¶43. “Invoices” and demand letters by attorneys retained by APEMT Trust were issued not long thereafter, threatening suit, through which the Trust would seek not only the value of the relevant assessment, but also costs and fees, including a substantial amount in attorneys’ fees. This is precisely what the Trust seeks now, through the suit, filed in New Jersey Superior Court, Morris County (the “APEMT Suit”).
How Frier Levitt Can Help
As Frier Levitt has been following this matter for some time now and has already researched and identified certain potential weaknesses in the Trust’s case, Members or former Members of the Trust who have been sued in the APEMT Suit should contact Frier Levitt for a free consultation to discuss their options.
[1] https://www.frierlevitt.com/tag/apemt-lawsuit/
