Blue Shield Asks Justices To Settle Coverage Defense Issue

Law360, New York (October 19, 2012, 8:07 PM EDT) -- Blue Shield of California wants the U.S. Supreme Court to determine whether government-backed employee health plans effectively waive coverage defenses they don't cite the first time they deny a claim, appealing a ruling that it must pay for an anorexic woman's stay at a residential treatment center.

The Ninth Circuit, in ruling that Blue Shield had to pay because of a California law intended to ensure mentally ill patients receive similar care as those with physical ailments, also concluded that the insurer waived its right to...
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