BCBS Agrees To Settle Mental Health Coverage Suit For $7M

Law360, Los Angeles (January 16, 2018, 6:41 PM EST) -- Blue Cross Blue Shield of California has agreed to pay $7 million to settle allegations that it refused to cover residential and outpatient treatment for mental health or substance use-related disorders, a putative class of customers told a California federal judge on Monday.

The class had said California Physicians' Service, which does business as Blue Shield of California, and several related health insurance companies refused to cover certain treatments by relying on medical necessity rules that improperly restricted coverage for mental health illnesses more than generally accepted professional standards would permit.

Blue Shield ended up changing its guidelines during the course...

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