Government Criticizes Attempt to Prevent Regulation of New Health Plan

The Data Marketing Partnership LP is seeking to permanently block the US Labor Department from determining that its novel scheme isn’t an employee benefit plan under federal law. However, the agency has stated that this request is unnecessary and premature. The company had previously overturned a 2020 DOL memo that stated their program, in which participants exchange internet data for basic health insurance benefits, was not covered under the Employee Retirement Income Security Act of 1974.

The company is now seeking an injunction to reaffirm their position on remand, which the agency argues would limit the department’s ability to regulate and oversee employee benefit plans. By preventing the Labor Department from making determinations on their scheme, the company is potentially hindering the regulatory process and leaving participants vulnerable to potential risks.

The ongoing legal battle between Data Marketing Partnership LP and the US Labor Department highlights the complexities and challenges of defining and regulating employee benefit plans. The outcome of this dispute could have far-reaching implications for how similar novel schemes are treated under federal law and could impact the rights and protections of participants in these programs. It remains to be seen how this case will ultimately be resolved and what it might mean for the future of employee benefits regulation in the United States.