A Closer Look At 'Preemptive' Federal Contract Terms

Law360, New York (April 20, 2017, 4:30 PM EDT) -- Subrogation of insureds’ third-party claims is not a subject that excites too many lawyers. But in Coventry Health Care of Missouri Inc. v. Nevils, No. 16-149, decided on April 18, the U.S. Supreme Court issued a subrogation-related opinion that will be of interest to anyone who tracks the court’s federal preemption jurisprudence.

Express Preemption

In Coventry the court had little difficulty holding that the Federal Employees Health Benefits Act (FEHBA) — which establishes the principal health insurance program for 8 million federal employees — expressly preempts...
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