Arizona and California Behavioral Health Centers Sue Health Net for Failing to Properly Pay Claims Related to Drug and Alcohol (Behavioral Health) Treatment
A large number of Behavioral Health Centers in Arizona and California have filed separate lawsuits against a major health insurance company in California and Arizona state courts. Health Net Life Insurance Company, certain affiliates and its parent company Centene, (“Health Net”) have been sued for unlawfully refusing to pay millions of dollars in claims to treatment centers in Arizona and California providing treatment to Health Net insureds. As set forth in the lawsuits filed by Gallagher & Kennedy attorneys John Flynn and Kevin Neal, Health Net deliberately stopped paying treatment providers in Arizona and California as part of a plan to save money at the expense of the people who bought Health Net policies, all the while seeking to consummate its sale to a larger insurance holding company (Centene).
As required by federal law, the Health Net policies provide coverage for mental health and addiction treatment. As set forth in the lawsuits, many insureds who paid premiums for the Health Net policies sought treatment for much needed care. They had their benefits confirmed by Health Net and claims were paid in the ordinary course until late 2015 and early 2016 when Health Net abruptly stopped paying claims.
The lawsuits seek proper reimbursement from Health Net, as well as other damages caused by their actions that have resulted in the untimely discharge of vulnerable patients, reductions in staff and the actual or threatened closing of treatment centers. The lawsuit was filed only after the centers, Northern Arizona Recovery Association and Addiction Treatment Advocacy Coalition (CA), and counsel, aggressively pursued regulatory, political and non-litigation options in an attempt to resolve the disputes with Health Net. We are hopeful these actions will result in swift and proper claim payments to behavioral health treatment centers and protection of insurance benefits for Arizona and California consumers.