Lowe’s Employee Health Plan Class Action Lawsuit

Lowe’s employees have filed a class action lawsuit against the company, claiming Lowe’s violated federal law by changing the way employees re-enrolled in the company’s Group Health Plan, causing them to have their insurance cancelled without their knowledge.

The employees allege in the class action lawsuit that Lowe’s violated the Employee Retirement Income Security Act (ERISA) when it modified its prior practice of automatically re-enrolling employees in their Group Health Plan, except when they sought any changes requested in coverage. Instead, Lowe’s put into place a system that required every employee to re-enroll via its computer system.

According to the Lowe’s class action lawsuit, the new practice caused some employees to have their health insurance cancelled without notification. The employees only learned of the cancellation when they or their family members became ill, and were advised of their uninsured status through their physician or medical care provider, the class action lawsuit says.

“They were never advised by Lowe’s that their insurance coverage had been cancelled. Each named Plaintiff had to actively seek out the truth regarding the cancellation of their insurance coverage and were given different stories and excuses from every Lowe’s employee from whom they sought answers,” the class action lawsuit states. “Lowe’s failed to give notice to any of its employees who lost coverage due to the modification of the reenrollment procedure or to inform them in any way of the loss of coverage.”

The Lowe’s ERISA class action lawsuit alleges that as Plan fiduciaries, Lowe’s was required to exercise skill, care, prudence, and diligence in administering all components of the Plan, and was responsible for administering the Plan solely in the interest of Plan participants and beneficiaries. The Plaintiffs allege that in violation of their fiduciary duties to plan participants and beneficiaries, Lowe’s caused many employees to lose their coverage with the Lowe’s Group Medical Plan.

The Lowe’s ERISA class action lawsuit is brought on behalf of all participants in Lowe’s Group Medical Plan who had their health coverage terminated and were therefore denied medical benefits by Lowe’s for part or all of the 2011 calendar year. It is seeing reinstatement of coverage for Class Members as well as reimbursement of all health care expenses they incurred due to the unlawful termination of their benefits.