Feds Back Rehearing Bid Over Mental Health Claims Reprocessing

Patients challenging United Behavioral Health’s internal guidelines for mental health coverage received support from the Department of Labor in their bid to have the Ninth Circuit rethink its recent ruling largely favoring the insurer.

The January decision by a panel of judges on the US Court of Appeals for the Ninth Circuit held that reprocessing of denied benefit claims isn’t an appropriate remedy for a class suit filed under the Employee Retirement Income Security Act.

According to the Labor Department, this “novel rule” would “severely constrict” the primary remedy for benefit plan participants who have their claims denied using standards ...