A Minnesota federal judge has refused to fully dismiss a Mayo Clinic Withheld Benefits suit, keeping alive claims that the healthcare giant and its benefits administrator failed to provide critical information to a worker who struggled to predict her family’s medical costs.
U.S. District Judge Jeffrey M. Bryan issued a mixed ruling Friday, finding that plaintiff Sherry Orrison presented enough evidence to support parts of her allegations under the Employee Retirement Income Security Act (ERISA) and the No Surprises Act. At the same time, the judge dismantled her racketeering claims, saying they lacked the muscle to survive.
Worker Says Benefits Maze Led to Out-of-Network Costs
Orrison filed suit in April 2024, accusing the Mayo Clinic and MMSI Inc., doing business as Medica Health Plan Solutions, of steering her toward costly out-of-network providers for her son’s mental health care. She claimed the plan’s search tool excluded in-network options, leaving her with no affordable path.
The suit further alleges that the clinic and Medica stonewalled her repeated requests for reimbursement calculations and delivered contradictory answers about deductibles and out-of-pocket maximums. Orrison argued this prevented her from budgeting medical costs and robbed her of the ability to make informed healthcare decisions.
