Blue Cross & Blue Shield of Texas is accused of wrongly denying coverage for residential mental health treatments by relying on undisclosed medical necessity criteria, according to a new proposed class action filed in federal court.
The lawsuit claims the insurer denies coverage based on medical necessity criteria for residential behavioral health treatments that are “unmentioned” in its certificates of coverage and inconsistent with the terms of its plan. Blue Cross’s standards for covering residential mental health care are more restrictive than its standards for covering care at skilled nursing facilities, which is a violation of federal mental health parity ...
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