Insurance Company Sued Over Denied Mental Health Coverage

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Community Insurance Company (which does business as Anthem Blue Cross and Blue Shield) is facing claims that it violated the Mental Health Parity and Addiction Equity Act of 2008 (the Parity Act) by refusing to cover a minor adolescent’s mental health treatment. The child’s mother has filed a proposed class action lawsuit against the insurance company, alleging that the Parity Act prohibits insurance providers from restricting coverage of mental health treatments more than medical or surgical treatments, if mental health benefits are provided in their plans. According to the complaint, the plaintiff sought treatment for her daughter at a residential treatment facility (RTC) in Utah and was denied coverage of the $58,220 bill. The defendant allegedly excludes RTC treatment from its covered options, but does not impose similar limitations on medical/surgical benefits, in purported violation of federal law.