Blue Cross Of Illinois Sued For Denying Coverage For Residential Mental Health Treatment

On July 30, 2014, a lawsuit was filed against Blue Cross & Blue Shield of Illinois (BCBSIL) alleging that the company violated federal mental health parity laws by refusing to cover residential treatment for mental health disorders. The plaintiff sought insurance coverage of medically necessary residential treatment for a 16-year-old child with multiple mental health disorders. However, the plaintiff’s health insurance, an employer-sponsored plan administered by BCBSIL, a subsidiary of Health Care Service Corporation, excludes residential treatment. In addition to seeking coverage of residential treatment for the child, the plaintiff asked the court to authorize the . . .