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Weekly News Wire | September 6, 2016

Malvern Institute Sues Magellan, Alleges Mental Health Parity Violations

On August 5, 2016, the Malvern Institute for Psychiatric and Alcoholic Studies Inc. (Malvern) filed a class-action lawsuit against Magellan Healthcare Inc. alleging violations of the Mental Health Parity and Addiction Equity Act (MHPAEA) in its role administering behavioral health benefits for the federal Blue Cross insurance plans. Malvern alleges that Magellan imposes barriers limiting access to federal Blue Cross behavioral health benefits that are not imposed on federal Blue Cross medical and surgical benefits.

Specifically, the Malvern allegations are focused on barriers to residential addiction treatment. The barriers include the following:

Refusal to preauthorize residential addiction treatment on . . .

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