Sarah Mirando  |  March 18, 2013

Category: Legal News

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UnitedHealth Mental Health Coverage Class Action Lawsuit

By Kimberly Mirando

 

UnitedHealth GroupUnitedHealth Group was hit with a class action lawsuit last week accusing the insurance company of setting up multi-layered practices and procedures that prevent patients from receiving mental health coverage.

The proposed class action lawsuit accuses UnitedHealth of systematically implementing roadblocks designed to eliminate, reduce or discourage the provision of mental health care in violation of the federal Mental Health Parity and Addiction Equity Act and two equivalent state laws in New York and California known as Timothy’s Law and the Unruh Civil Rights Act. It also alleges the practices violate the Employee Retirement Income Security Act, the Affordable Care Act, and California’s unfair competition law.

The class action lawsuit was filed on behalf of the New York State Psychiatric Association and three beneficiaries who had their coverage for mental health services denied. According to the plaintiffs, UnitedHealth “systematically implemented unlawful and deceptive practices designed to create the illusion of impartiality, fairness, and due process while simultaneously undermining access to treatment for the most vulnerable segment of our society. United’s improper conduct is single-minded — to maximize profitability at the expense of disenfranchised beneficiaries whose shame, fear, and fragility it so keenly exploits.”

The Mental Health Parity law was enacted in 2008 to prevent people with mental illness and addiction from being discriminated against in treatment coverage. Under the law, health care providers are required to offer the same access to mental health care and substance abuse treatment as they provide for physical care.

The class action lawsuit alleges UnitedHealth violates the law by imposing improper policies that prevent policyholders from getting mental health services covered, including by denying long-term treatment and making it extremely difficult to obtain initial and continued authorizations for intermediate levels of care.

The NYSPA also alleges United denies out-of-network coverage based on “phantom” requests for additional information that beneficiaries and providers say they never received.

The class action lawsuit is seeking damages and a court order forcing United to change its practices.

The UnitedHealth Mental Health Care Class Action Lawsuit case is New York State Psychiatric Association Inc. et al. v. UnitedHealth Group, Case No. 13-cv-01599, U.S. District Court for the Southern District of New York.


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Updated March 18th, 2013

 

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