Federal court revives benefits denial class action suit against UHC subsidiary

A three-judge panel in federal court last week partially revived a class action lawsuit against UnitedHealth Group subsidiary United Behavioral Health, reversing an earlier decision from 2020. Rehearing their initial decision in favor of UHG, the panel in the U.S. Court of Appeals for the 9th Circuit now ruled that some policyholders may be entitled to relief from United Behavioral Health because of an alleged breach of the organization’s fiduciary duties under the Employee Retirement Income Security Act of 1974, along with wrongful denial of benefits. AHA and other stakeholders filed an amicus brief urging the panel to reconsider its earlier decision in favor of UHG.