On March 11, 2021, U.S. District Court Chief Judge Jane Magnus-Stinson issued an order denying a motion to dismiss brought by defendants Golden Rule Insurance Company and its affiliates, who sought to dismiss Plaintiff’s Parity Act claims. The claims brought against Golden Rule allege that the Defendant’s practice of allegedly presumptively denying insurance coverage on urinalysis testing and intensive outpatient services for substance abuse treatment, invoking lack of medical necessity, is “out of parity” with the manner in which they treat requests for coverage for other medical services.
The decision is particularly significant as it validates Plaintiff’s federal Parity Act claims brought as a common law breach of contract, possibly the first time a court has validated such claims.
This proposed class action is entitled Collyer Smith, et. Al. v. Golden Rule Insurance Company et. Al. Case No.: 1:20-cv-02066-JMS-TAB, pending in the United States District Court, Southern District of Indiana. Plaintiffs are represented by Wexler Wallace LLP, Jordan Lewis, P.A., Crueger Dickinson LLC, Greg Coleman Law, and Delaney & Delaney LLC.
To read the decision in its entirety, click here.
If you or a loved one have been denied insurance coverage for substance abuse treatment services, and would like information concerning whether you have a potential claim, please complete this online form or you may contact a Wexler Wallace attorney by calling (312) 346-2222.