Mary Ann Hansen v. Blue Cross of California Ventura County Foundation for Medical Care

OVERVIEW

This case involves the attempt by Blue Cross of California (Blue Cross) to obtain appellate review of a district court order remanding a removed case to state court. Mary Ann Hansen (Hansen) brought a class action suit alleging state law claims for Blue Cross’ failure to pay insurance benefits. Blue Cross removed the action based solely on the existence of federal question jurisdiction. It contended that the Employment Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001-1461 (1982 & Supp. V 1987), preempted the state law claims. The district court held that it lacked subject matter jurisdiction after it concluded that Hansen’s plan was not an ERISA plan because the individuals paid their own premiums.

FACTS

Hansen filed a class action suit in state court against Blue Cross, the Ventura County Foundation (administrator of the group plan), and Doe defendants 1-20 for failure to pay benefits for medical expenses incurred by Hansen and other class members between 1984 and 1987 based on an exclusion for temporomandibular joint syndrome (TMJ). Hansen’s class action complaint consisted of two counts: one for declaratory relief that the exclusion was improper; and the…