Robert Terry Davis, et al vs. Wilson County, TN

Wilson County sought to modify its health insurance plan providing coverage for "retired" employees. Two employees, fitting the definition of retired employees but not yet retired, challenged the modification on the ground that their rights in the prior plan had vested. The Chancery Court of Wilson County held that the employees had a vested right to continue under the prior plan. We hold that health insurance benefits are welfare benefits that do not vest absent a contractual provision that they cannot be changed. We therefore reverse the lower court's decision and dismiss the complaint.