DOL sues UnitedHealthcare over mental health coverage

UnitedHealth Group and/or its affiliates will pay over $13 million to resolve federal, state and private litigation alleging violations of federal and state mental health parity laws, according to court filings yesterday in New York. The U.S. Department of Labor yesterday sued United Behavioral Health and United Healthcare claiming they violated the Mental Health Parity and Addiction Equity Act of 2008, which prohibits health plans covered by the Employee Retirement Income Security Act from imposing more restrictive treatment limitations on mental health and substance use disorder benefits than on medical/surgical benefits, and their fiduciary duties under ERISA. The New York attorney general also sued UnitedHealth Group, United Behavioral Health, UnitedHealthcare and Oxford Health Plans, claiming the companies violated both federal and state mental health parity laws. The companies will pay $2.5 million to resolve the Labor Department claims, $1.1 million to resolve the state’s claims, and $10 million to resolve private class action claims, according to the settlement agreements.