11.12.2023 03.30 CST
Recent court decision reiterates that provider fees are reasonable only of fiduciaries understand all income received by a provider as the result of providing services to a plan.
The U.S. Court of Appeals for the Ninth Circuit recently clarified fiduciaries’ obligation to consider all revenue received by a provider—even indirect revenue from third parties. The ruling relies heavily on 2012 DOL regulations and could prompt fiduciaries to be more insistent in obtaining comprehensive disclosure from providers on all their sources of income.