ERISA Doesn't Bump Providers' State Law Suit, 9th Circ. Says

Law360 (September 5, 2018, 8:52 PM EDT) -- The Employee Retirement Income Security Act doesn’t preclude a proposed class of psychotherapists from alleging in state court that a health insurance company’s screening criteria for mental health care coverage flouted Washington law, the Ninth Circuit ruled Tuesday while reversing a lower court’s ruling.

The three-judge panel said in its published opinion that the district court wrongly concluded that the psychotherapists’ claims against Group Health Cooperative satisfied a two-prong test established by the U.S. Supreme Court’s 2004 decision in Aetna Health Inc. v. Davila for determining whether state law claims were preempted by ERISA. Because the lead plaintiffs’ claims were based...

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