UnitedHealth Liposuction Deal Approved, With Asterisk on Fees

A class settlement requiring UnitedHealthcare Insurance Co. to cover specialized liposuction procedures for 28 patients with lipedema received final court approval, but the issue of attorneys’ fees may not be resolved until late 2024.

The settlement allows more than two dozen class members to have their surgeries covered regardless of whether they meet the insurer’s medical necessity criteria and with no cap on the amount of reimbursement. United also agreed to cover future surgeries for class members if certain conditions are met.

Judge William Alsup granted final approval to the deal Dec. 22 after twice rejecting the parties’ prior attempts at settlement. In previous orders, Alsup expressed concerns that the agreement would benefit lawyers without providing serious relief to patients.

Although he approved the revised deal, Alsup awarded the patients’ lawyers only $100,000 in attorneys’ fees—about one-tenth of what they requested. The judge pointed out that class members will receive no benefits until United approves their claims and sends them checks, and there is “no telling” how long that will take.

Alsup, who sits in the US District Court for the Northern District of California, said he’d revisit the issue of attorneys’ fees in “about a year,” setting a Nov. 5, 2024, deadline for class counsel to provide details about the benefits ultimately received by class members.

The lawsuit says United incorrectly treated liposuction as an unproven treatment for lipedema, which is a chronic buildup of fat tissue that affects mainly women and causes pain, mobility problems, and joint disorders. Unlike lifestyle-related or diet-induced obesity, lipedema typically requires liposuction because it can’t be treated with bariatric surgery or lifestyle changes, the lawsuit says.

United, Cigna Corp., Anthem Inc., and Aetna Life Insurance Co. have all been sued over liposuction coverage by lipedema patients.

Gianelli & Morris ALC represents the patients. Hogan Lovells US LLP represents United.

The case is Caldwell v. UnitedHealthcare Ins. Co., 2023 BL 467031, N.D. Cal., No. 3:19-cv-02861, 12/22/23.