Horizon Blue Cross Tentatively Settles Suit Over Coverage of Eating Disorders
November 25, 2008
Horizon Blue Cross Blue Shield of New Jersey made a preliminary agreement Monday to pay up to $3.6 million — mostly to plaintiffs lawyers — to end a class action suit alleging it wrongfully denied claims by eating-disorder patients.
The settlement will, subject to approval by a federal judge, provide about $1.18 million to certain insureds who couldn’t get coverage for extended bulimia and anorexia treatments under their Horizon plans.
Horizon would treat future claims more liberally and make internal reforms to resolve disputes over benefits for eating disorders. The reforms would apply to policies held by more than 1 million of its 3.2 million insureds in New Jersey.
And Horizon would pay up to $2.45 million in fees to the plaintiffs class action attorneys, led by Bruce Nagel of Nagel Rice in Roseland, N.J.
Read Article: Law.com
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