A federal trial judge has certified a class action filed against Blue Shield of California and Magellan Health Inc. for systematically restricting insurance coverage for mental health and substance abuse treatment.
Certification means the case can proceed; if it weren't certified, it would be dismissed.
In her June 15 order, U.S. District Judge Lucy Koh of the Northern District of California granted class certification for Employment Retirement Income Security Act group plan members whose claims for residential and intensive outpatient mental health and substance abuse treatment were rejected by insurer Blue Shield and health care provider Magellan based on the companies’ “medical necessity criteria guidelines” from Jan. 1, 2012, to the present.
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Kristen Rasmussen
Kristen Rasmussen is an Atlanta-based reporter who covers corporate law departments and in-house attorneys.
