Paige M. Best v. Fairbanks North Star Borough

Summary

The Alaska Supreme Court affirmed summary judgment for the Fairbanks North Star Borough, holding that its self-funded employee health plan was a bargained-for employee benefit rather than an insurance policy. Because the plan was not insurance, ordinary contract-interpretation principles applied, and its clear terms permitted the Borough to condition advance payment of medical expenses on execution of a subrogation agreement waiving specified defenses. The court also held that the common fund and made-whole doctrines did not provide Best relief and that her remaining due process, public-policy, and economic-duress arguments were waived or lacked merit.