A federal magistrate has given preliminary approval to a settlement of nearly $12.9 million in a case filed against health insurance giant Anthem under the Employee Retirement Income Security Act (ERISA). In the suit, plan participants and beneficiaries alleged that Anthem inappropriately denied coverage for individuals receiving residential behavioral health treatment for mental health conditions or substance use disorders. The case is Collins et al. v. Anthem Inc. et al., No. 2:20-cv-01969, U.S. District Court for the Eastern District of New York.
The plaintiffs accused Anthem of denying residential treatment as not medically necessary under the company’s utilization review guidelines. The settlement amount will first be allocated to attorney fees, litigation expenses, and administration costs. Thereafter, the settlement proceeds will result in a minimum $100 payment for class members, or a pro rata reimbursement of their expenses related to the wrongfully denied claims.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
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