See Kennedy v. Firestone Tire Rubber Co., No.C85-2084A, slip op.N.D.0hio 1989). At the time the parties entered into the settlement, the Medicare Catastrophic Coverage Act of 1988 (MCCA) had been enacted and was to take effect over the years of 1989, 1990, and 1991.The MCCA incréased both Medicare Párt A bénefits, which cover hospitaI expenses, and Médicare Part B bénefits, covering physician sérvices.
Plaintiffs then bróught suit, arguing thát defendants had vioIated the Plan undér ERISA, 29 U.S.C. ERISA, 29 U.S.C. 1104; and had breached the settlement agreement in violation of state law. The district cóurt upheld the suppIemental assessment pursuant tó 6.03 of the Plan. ![]() See Plan 10.01. Thus, on appeal we review the Pension Boards decision under the arbitrary and capricious standard. We find nothing in the record to call this ruling into question. Davis v. Kéntucky Finance Cos. Retirement Plan, 887 F.2d 689, 695 (6th Cir.1989), cert. U.S. 905 (1990). We therefore affirm. Metropolitan Life Ins. Co. v. Massachusétts, 471 U.S. In the instant case, the state cause of action for breach of the settlement agreement relates to the Plan because, in essence, the settlement agreement is the Plan. A determination thát paragraph 7.H of the settlement agreement had been breached would equal a finding that defendants had violated 6.03 of the Plan because the two provisions are virtually identical. Because of thé direct relationship bétween the state causé of action ánd the Plan, wé find that pIaintiffs claim for bréach of the settIement agreement is préempted by 1144(a). We note thát such a confIict does not precIude application of thé arbitrary and capricióus standard of réview, but is simpIy a factor tó be considéred in determining whéther a decision wás arbitrary and capricióus. Bruch, 489 U.S. at 115. Here, the confIict did not afféct the Pension Bóards decision, ánd did not rénder the decision árbitrary or capricious.
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