December 16, 2009

New Jersey Psychological Association vs. New Jersey State Health Benefits Commission; Horizon Healthcare Services, Inc.; and Magellan Health Services, Inc.

The New Jersey Psychological Association filed the lawsuit because Magellan is asking psychologists treating state employees covered by health insurance through Horizon Blue Cross Blue Shield to disclose treatment plans and treatment notes that may reveal patient thoughts and feelings revealed during therapy and information about the underlying cause or causes of the patient's mental health condition. The information requested exceeds utilization and peer-review information requested by Magellan to make coverage, benefit, and payment determinations for beneficiaries of private sector health plans using Magellan's services. The plaintiffs allege that the information is being requested to discourage state employees covered by Horizon BCBS from seeking psychological treatment, to reduce or deny outright mental health benefits provided under the State Health Benefit Program.