United Must Face Allegations It Underpaid Mental Health Claims

A proposed class action accusing United Behavioral Health of scheming to underpay out-of-network claims for mental health and substance use disorder treatment can proceed, a federal district court ruled.

The U.S. District Court for the Northern District of California refused to toss out claims that United conspired with MultiPlan Inc. to generate the lowest possible reimbursement rates for out-of-network, out-patient treatment services in violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act.

The court also declined to dismiss claims that United breached its fiduciary duties and terms of its health plan in violation of the Employee Retirement Income Security ...