Federal Judge Allows Blue Cross Same-Sex Fertility Treatment Discrimination Suit to Proceed

December 15, 2023
Hall Benefits Law, LLC

An Illinois judge has denied a motion by Blue Cross Blue Shield to dismiss a same-sex discrimination lawsuit concerning coverage for couples undergoing fertility treatments. In denying the insurance company’s motion to dismiss, the judge found that the company may have denied the woman coverage under a policy that unlawfully discriminates against LGBTQ couples. The case is Murphy v. Health Care Service Corp., Case Number 1:22-cv-02656, U.S. District Court for the Northern District of Illinois.

Kelly Murphy sued Health Care Service Corp. d/b/a Blue Cross Blue Shield in May 2022, alleging that the insurance company violated the Affordable Care Act (ACA). She claimed that she had to pay $19,000 in out-of-pocket expenses for fertility treatments that led to a successful pregnancy, whereas heterosexual couples were not subject to the same out-of-pocket costs.

Blue Cross argued that the court should dismiss Murphy’s suit because, under its policy, LGBTQ couples have multiple ways to qualify for fertility treatment coverage. However, Judge LaShonda A. Hunt disagreed, finding that a significant number of members of the LGBTQ community could not meet the definition of infertility without incurring out-of-pocket costs, unlike their straight counterparts.

For instance, a heterosexual couple can have unprotected sex for one year without it resulting in a pregnancy to qualify for fertility coverage, which would cost them nothing. However, this avenue is not an option for an LGBTQ couple. Instead, if a person in a same-sex couple has not been diagnosed with a medical condition affecting their fertility, the couple would have to show that they could not conceive after one year of medically based and supervised conception methods, which would entail out-of-pocket costs.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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