Benefits & Executive Compensation News

Family Can Sue Blue Shield Over $150,000 Mental Health Treatment

July 31, 2020, 3:10 PM

Blue Shield of California must face a family’s lawsuit seeking coverage for nearly $150,000 in medical bills tied to their teenage son’s two-and-a-half year stay at a residential mental health treatment facility, a federal judge in Utah ruled.

The family can move forward with claims under federal mental health parity law, because they plausibly alleged that the insurer held them to an “acute” standard of medical necessity that it doesn’t apply to treatments at other inpatient facilities, Judge Clark Waddoups of the U.S. District Court for the District of Utah held Thursday.

The family claims Blue Shield, which is formally...

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