throbber
Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.2 Page 1 of 16
`
`Brian S. King, #4610
`Brent J. Newton, #6950
`Samuel M. Hall, #16066
`BRIAN S. KING, P.C.
`420 East South Temple, Suite 420
`Salt Lake City, UT 84111
`Telephone: (801) 532-1739
`Facsimile: (801) 532-1936
`brian@briansking.com
`
`Attorneys for Plaintiffs
`
`THE UNITED STATES DISTRICT COURT
`DISTRICT OF UTAH, CENTRAL DIVISION
`
`C.S., individually and on behalf of J.S., a
`minor
`
`COMPLAINT
`
`Plaintiffs,
`
`Case No. 2:21-cv-00516-DAO
`
`vs.
`
`BLUE CROSS BLUE SHIELD OF RHODE
`ISLAND and BEACON HEALTH OPTIONS
`
`Defendants.
`
`Plaintiff C.S., individually and on behalf of J.S. a minor, through his undersigned
`
`counsel, complains and alleges against Defendants Blue Cross Blue Shield of Rhode Island
`
`(“BCBSRI”), and Beacon Health Options (“Beacon”) as follows:
`
`PARTIES, JURISDICTION AND VENUE
`
`1. C.S. and J.S. are natural persons residing in Fulton County, Georgia. C.S. is J.S.’s father.
`
`2. BCBSRI is an insurance company headquartered in Providence, Rhode Island and was
`
`the third-party claims administrator for the insurance plan providing coverage for the
`
`Plaintiffs (“the Plan”) duing the treatment at issue. BCBSRI acted as the claims
`
`1
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.3 Page 2 of 16
`
`administrator, as well as the fiduciary, under ERISA for the Plan during the treatment at
`
`issue in this case.
`
`3. BCBSRI delegated many of its appeal processing duties to Beacon, an insurance
`
`company focused on behavioral health claims headquarted in Boston, Massachusetts.
`
`4. The Plan is a fully insured employee welfare benefits plan under 29 U.S.C. §1001 et.
`
`seq., the Employee Retirement Income Security Act of 1974 (“ERISA”). C.S. was a
`
`participant in the Plan and J.S. was a beneficiary of the Plan at all relevant times. C.S.
`
`and J.S. continue to be participants and beneficiaries of the Plan.
`
`5. J.S. received medical care and treatment at Change Academy at Lake of the Ozarks
`
`(“CALO”) from September 14, 2018 to October 21, 2019. CALO is a licensed treatment
`
`facility located in Camden County, Missouri, which provides sub-acute inpatient
`
`treatment to adolescents with mental health, behavioral, and/or substance abuse
`
`problems.
`
`6. BCBSRI, acting in its own capacity or through its affiliate Beacon, denied claims for
`
`payment of J.S.’s medical expenses in connection with her treatment at CALO.
`
`7. This Court has jurisdiction over this case under 29 U.S.C. §1132(e)(1) and 28 U.S.C.
`
`§1331.
`
`8. Venue is appropriate under 29 U.S.C. §1132(e)(2) and 28 U.S.C. §1391(c) based on
`
`ERISA’s nationwide service of process and venue provisions, because the Defendants do
`
`business in Utah and across the United States. In addition, venue in Utah will save the
`
`Plaintiffs costs in litigating this case. Finally, in light of the sensitive nature of the
`
`medical treatment at issue, it is the Plaintiffs’ desire that the case be resolved in the State
`
`of Utah where it is more likely their privacy will be preserved.
`
`
`
`2
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.4 Page 3 of 16
`
`9. The remedies the Plaintiffs seek under the terms of ERISA and under the Plan are for the
`
`benefits due under the terms of the Plan, and pursuant to 29 U.S.C. §1132(a)(1)(B), for
`
`appropriate equitable relief under 29 U.S.C. §1132(a)(3) based on the Defendants’
`
`violation of the Mental Health Parity and Addiction Equity Act of 2008 (“MHPAEA”),
`
`an award of prejudgment interest, and an award of attorney fees and costs pursuant to 29
`
`U.S.C. §1132(g).
`
`BACKGROUND FACTS
`
`J.S.’s Developmental History and Medical Background
`
`10. J.S. was born in China and lived in a state-run orphanage for her first 11 months. J.S.
`
`received very little interaction or care during these months because there was only one
`
`caregiver for many children. It is believed that J.S. was severely neglected except for
`
`basic physical needs during this time.
`
`11. In August of 2005, J.S. was adopted and moved to Georgia. During her first two years
`
`she developed normally, at least physically, but other milestones such as when she started
`
`talking were delayed.
`
`12. When J.S. did start to speak, she only spoke to her family and showed severe anxiety and
`
`extreme shyness when addressing others.
`
`13. She had a hard time falling asleep as a child and required her mother to lie with her in
`
`order to fall asleep and refused to move her own bed from her parents’ room.
`
`14. She would cry every night as a child. J.S. was also hyper-vigilant and would wake up
`
`regularly to see if her parents were still there.
`
`
`
`3
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.5 Page 4 of 16
`
`15. J.S.’s parents took her to several developmental pediatricians, occupational therapists,
`
`and other paractioners to try and diagnose her challenges. These doctors diagnosed her
`
`with mild Autism and Reactive Attachment Disorder (RAD).
`
`16. J.S. attended a private school starting in 2009. She was scared to go to preschool and
`
`cried a lot, but eventually settled in. J.S.’s “normal” was to be continually anxious about
`
`attending school.
`
`17. When J.S attended kindergarten, things became harder. J.S. had such intense anxiety that
`
`she decided she didn’t want to “walk” for her kindergarten graduation because she didn’t
`
`want so many people to look at her. She also did not want to play organized sports, but
`
`finally agreed to play as long as her parents and family didn’t watch. J.S. eventually quit
`
`organized sports all together.
`
`18. When J.S. entered first grade, both she and her sister began attending the same public
`
`school. J.S. was very attached and reliant on her sister and tried to make her “represent”
`
`her and do any sort of talking for her.
`
`19. As J.S. got older, she started to exhibit irrational fears that she continues to present, such
`
`as doctors, dentists, or haircuts. At one point, J.S.’s parents tried to get her a haircut
`
`because her hair had grown all the way down her back and J.S. physically fought to get
`
`out of the salon.
`
`20. J.S.’s behaviors became more resistant as she got older. Her doctor had to come to the car
`
`to see her for appointments.
`
`21. By the time J.S. was in fourth grade, she developed a strong motivation to be perfect in
`
`school. J.S. started crying every day and disrupting class. She would sometimes spend
`
`
`
`4
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.6 Page 5 of 16
`
`whole days in the counselor’s office. In November of 2014, J.S. starting to see a
`
`psychiatrist again and was taken out of school.
`
`22. The psychiatrist prescribed a few medications but ultimately could not get J.S. to talk and
`
`a few months later J.S. switched to another psychiatrist.
`
`23. Over the years, J.S.’s two psychiatrists prescribed many different medications but nothing
`
`helped.
`
`24. Between fourth and seventh grade, J.S. attended nine different schools. In November of
`
`2016, after J.S. had a severe breakdown at a private school, her parents enrolled her at a
`
`therapeutic school called the Cottage School. J.S. still had issues but having trained
`
`therapists on staff helped her significantly.
`
`25. Although J.S. continued to struggle with staying in a school, she developed strong
`
`aspirations to attend an Ivy League college. Her desire to be perfect intensified which
`
`increased her anxiety dramatically.
`
`26. Eventually, J.S. started wearing the same clothes every day and resisting self-care such as
`
`brushing her hair and showering. Upon the advice of J.S.’s psychiatrist and therapist, her
`
`parents began to research residential treatment options for J.S.
`
`27. After five years of switching schools, throwing tantrums where she would refuse to leave
`
`her room for days at a time, hiding under a blanket, experiencing severe anxiety attacks,
`
`trying countless medications that never worked, working with psychiatrists and
`
`therapists, and speaking about hating her life, J.S.’s parents and doctors decided that she
`
`must attend a residential treatment program to assist her in getting the assistance she so
`
`clearly needed. Her parents researched facilities for nearly half a year before making the
`
`decision to send J.S. to CALO.
`
`
`
`5
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.7 Page 6 of 16
`
`CALO
`
`28. J.S. was admitted to CALO on September 14, 2018.
`
`29. On March 19, 2019, Beacon sent J.S. a denial letter for services at CALO from
`
`September 14, 2018 forward. This denial letter states,
`
`“Based upon the information provided, a Beacon doctor has decided that
`the treatment requested for residential mental health treatment, revenue
`code 1001, from 9.14.18 to 2/28/19, does not meet our guidelines for
`coverage, therefore we are unable to approve this request for coverage…
`You are a 14 year old female who was admitted to residential mental
`health treatment on 9/14/18, due to exhibiting controlling behaviors that
`were affecting your education and relationships. You were anxious about
`school and experiencing mood swings. You were not exhibiting any
`behavioral concerns that required 24 hour a day support. Therefore, as of
`9/14/18, it was not medically necessary to manage your condition with
`residential mental health treatment with 24 hour a day supervision. Your
`care could have been safely and effectively addressed with intensive
`outpatient mental health treatment which typically meets 3 days a week,
`for 3 hours each time, while residing with your family” (emphasis in
`original).
`
`30. On September 4, 2019, C.S. submitted a level one appeal to Beacon with attention to
`
`BCBSRI.
`
`31. C.S. quoted ERISA, stating that BCBSRI was obligated to provide C.S. with certain
`
`rights, such as:
`
`[p]rovid[ing] a review that takes into account all comments, documents, records,
`and other information submitted by the claimant related to the claim, without
`regard to whether such information was submitted or considered in the initial
`benefit determination.
`
`C.S. stated that,
`
`It is imperative that you comply with this regulation as it is the only way you can
`fully understand the complexities of [J.S.]’s mental illnesses and need for
`treatment.
`
`32. C.S. went on to talk about J.S.’ previous mental health history as noted in the
`
`“Background” section of this complaint.
`
`
`
`6
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.8 Page 7 of 16
`
`33. C.S. stated that it was because of the advice of J.S.’s psychiatrist and therapist that he
`
`looked into residential t reatment options in the first place. In a letter dated July 24, 2019,
`
`Dr. Hanevold Ph.D. states,
`
`Outpatient treatment in combination with a school program designed for
`youngsters with special needs was not an effective intervention program.
`Placement in an Intensive Attachment focused residential treatment program was
`recommended as a medical necessity to help this youngster move to healing and
`reach her optimal potential. Referral to Intensive Level Attachment Focused
`Treatment residential treatment centers was recommended for the next stage of
`treatment. (Programs such as CALO).
`
`34. C.S. stated that he saw a dramatic change in his daughter’s behavior and mood during her
`
`treatment at CALO. C.S. argued that it was clear J.S.’s treatment was effective, as she
`
`was allowed on a home visit and did not have any significant breakdowns, violence,
`
`property damage, or any similar behaviors that he was seeing prior to J.S.’s treatment at
`
`CALO.
`
`35. In addition, C.S. was able to ask J.S. to go to the orthodontist on another home visit. J.S.
`
`went in for the consult and then had braces put on all in one visit. This is something C.S.
`
`was amazed by and held up as as an example of how imperative the treatment at CALO
`
`was to J.S.
`
`36. The appeal quoted a therapy note from September 17, 2018, early on in J.S.’s time at
`
`CALO.
`
`The session focused primarily on engaging in co-regulation with [J.S]. Staff have
`reported she has cried all weekend wanting calls with her parents. TH provided
`safe touch, utilizing empathy, playfulness and acceptance. [J.S.] was able to stop
`cying and engage in dialog with TH – she did ask pertinent questions.
`
`37. The appeal included documentation from a psychiatrist appointment on October 16,
`
`2018, where it is stated that J.S.’s symptoms are, “Difficulty staying asleep, Irritability,
`
`Anxiety, anxiety attacks (one since her enrollment,) Closes left eye a lot, Taps her fingers
`
`7
`
`
`
`
`
`
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.9 Page 8 of 16
`
`against her opposite hand quite often.” And that her behaviors and risk factors were,
`
`“social isolation, defiance, disorded eating, difficulty making eye contact, consistent
`
`crying.”
`
`38. C.S. included J.S.’s medical records from September 14, 2018 through August 28, 2019
`
`and letters of medical necessity in the appeal.
`
`39. On September 16, 2019, Beacon sent J.S. another denial letter which stated nearly the
`
`exact same denial rational as before, but only addressed treatment dates from September
`
`14, 2018 to February 28, 2019. However, C.S.’s level one appeal addressed dates of
`
`service from September 14, 2018 forward.
`
`40. This second denial letter prompted C.S. to submit a level two appeal on October 24,
`
`2019, addressing J.S.’s full dates of service from September 14, 2018 through October
`
`21, 2019.
`
`41. In C.S.’s Level two appeal, he included the entirety of his Level 1 appeal, and also over
`
`one thousand pages of J.S.’s medical records from her time at CALO, and a
`
`psychoeducational evaluation dated September 5, 2019 completed by Russel Hyken,
`
`PhD, EdSp, MA, LPC, LCMHC, NCC.
`
`42. In a daily note from September 9, 2019 CALO staff wrote, “Self-Care: [J.S.] did display
`
`issues with food for this shift. Refused to eat [sic.] [J.S.] did display issues with her
`
`hygiene. Refused to shower, Refused to wash hair” sic.
`
`43. Notes from an individual therapy session from September 11, 2019 state,
`
`Today’s session focused primarily on discussion of discharge wrap up activities,
`learning emotion regulation skills that will help her at home and her commitment
`to engaging in those activities. [J.S.] was engaged, and participated in more
`dyadic dialog with TH than in sessions past. We did discuss possible concerning
`scenarios when she gets home, she engaged and was able to answer the questions.
`
`
`
`
`8
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.10 Page 9 of 16
`
`44. J.S. was still struggling after almost a year at CALO, but C.S. argued that she was
`
`progressing.
`
`45. A treatment plan update on August 31, 2019 stated,
`
`[J.S.] has shown less resistance to therapy and engaged a bit more verbally during
`her sessions…We have talked a bit more candidly regarding her social
`interactions with peers and her ability to be a positive influence with peers and her
`team. [J.S.] continues to have an unrealistic sense of self, often at times and
`inflated sense of who she is and how she presents herself with others…
`
`On-Going Discharge Planning – Continued focus on short term goals as we
`progress to long term goals. Currently [J.S.] continues to demonstrate behaviors
`that require the safety and structure of residential care.
`• Continued emotional dysregulation – extreme tearfulness and
`unresponsiveness to staff who try and co-regulate with her, this has
`lessened in frequency…
`• Unhealthy hypervigilance on academic achievement as well as academic
`complaints
`• Difficulty with social relationships appropriate to her age and
`developmental level
`• Extreme variability in her cognitive functioning
`• Emotional construction and blunted effect
`
`46. C.S. pointed out that CALO was consistently monitoring J.S.’ progress and checking in
`
`on her ability to discharge.
`
`47. On November 7, 2019, Beacon sent a denial letter for September 14, 2018 through
`
`February 28, 2019, stating that,
`
`revenue code 1001, cannot be certified from 09/14/2018 to 02/28/2019…At the
`time of admission, you were experiencing anxiety regarding attending school and
`at times not attending school along with symptoms of depression in which you
`would isolate yourself from others. You were not exhibiting any behavioral or
`verbal outbursts that required 24 hour support. Therefore, as of 09/14/19, it was
`not medically necessary to manage your symptoms with residential mental health
`treatment… This decision is based on Beacon Health Options Clincial Criteria for
`NMNC 2.202.04 Residential Treatment Services (RTS) Residiental Treatment
`Service, and the terms of the member’s plan as outlined in the Suscriber
`Agreement/benefit booklet.
`
`
`
`
`9
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.11 Page 10 of 16
`
`48. Beacon sent another letter on November 15, 2019, denying J.S.’s treatment at CALO
`
`from February 28, 2019 through October 21, 2019. The denial rational from Beacon was,
`
`a Beacon doctor has decided that the treatment requested for Residential mental
`health treatment, revenue code 1001, from 02/28/2019 to 10/21/2019, does not
`meet our guidelines for coverage, therefore we are unable to approve this request
`for coverage… You did not have any medical or mental health concerns that
`required 24 hour support. Therefore, as of 02/28/2019, it was not medically
`necessary to manage your symptoms with residental mental health treatment
`(emphasis in original).
`
`49. On February 17, 2020 Plaintiffs submitted an additional level one appeal addressing
`
`service from February 28, 2019 through October 21, 2019. In this appeal C.S. stated how
`
`Beacon violated ERISA and MHPAEA and showed Beacon that J.S.’s treatment was
`
`medically necessary. C.S., again, included over one thousand pages of medical records in
`
`the appeal.
`
`50. On March 5, 2020 Beacon sent Plaintiffs another denial letter again reusing the same
`
`denial reason as previous letters.
`
`51. On March 27, 2020 C.S. submitted a level two Appeal for treatment from February 28,
`
`2019 through October 21, 2019. This appeal included all of the three previous appeals,
`
`making the case as clear as C.S. could that J.S.’s treatment was medically necessary and
`
`that Beacon and BCBSRI violated the terms of the Plan, ERISA and MHPAEA.
`
`52. The Plaintiffs exhausted their pre-litigation appeal obligations under the terms of the Plan
`
`and ERISA.
`
`53. The denial of benefits for J.S.’s treatment was a breach of contract and caused C.S. to
`
`incur medical expenses that should have been paid by the Plan in an amount totaling over
`
`$239,000.
`
`
`
`10
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.12 Page 11 of 16
`
`54. Defendants failed to produce a copy of the medical necessity criteria for mental health
`
`and substance use disorder treatment and for skilled nursing or rehabilitation facilities in
`
`spite of C.S.’s request.
`
`FIRST CAUSE OF ACTION
`
`(Claim for Recovery of Benefits Under 29 U.S.C. §1132(a)(1)(B))
`
`55. ERISA imposes higher-than-marketplace quality standards on insurers and plan
`
`administrators. It sets forth a special standard of care upon plan fiduciaries such as
`
`BCBSRI and Beacon, acting as agents of the Plan, to “discharge [its] duties in respect to
`
`claims processing solely in the interests of the participants and beneficiaries” of the Plan.
`
`29 U.S.C. §1104(a)(1).
`
`56. Defendants failed to provide coverage for J.S.’s treatment in violation of the express
`
`terms of the Plan, which promise benefits to employees and their dependents for
`
`medically necessary treatment of mental health and substance use disorders.
`
`57. ERISA also underscores the particular importance of accurate claims processing and
`
`evaluation by requiring that administrators provide a “full and fair review” of claim
`
`denials and to engage in a meaningful dialogue with the Plaintiffs in the pre-litigation
`
`appeal process. 29 U.S.C. §1133(2).
`
`58. The denial letters produced by Beacon do little to elucidate whether defendants
`
`conducted a meaningful analysis of the Plaintiffs’ appeals or whether it provided them
`
`with the “full and fair review” to which they are entitled. Defendants failed to
`
`substantively respond to the issues presented in C.S.’s appeals and did not meaningfully
`
`address the arguments or concerns that the Plaintiffs raised during the appeals process.
`
`//
`
`
`
`11
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.13 Page 12 of 16
`
`59. In fact, Beacon’s denial letters rely on formulaic recitations and do not address the
`
`arguments raised by C.S. in any capacity.
`
`60. Defendants breached their fiduciary duties to J.S. when they failed to comply with their
`
`obligations under 29 U.S.C. §1104 and 29 U.S.C. §1133 to act solely in J.S.’s interest and
`
`for the exclusive purpose of providing benefits to ERISA participants and beneficiaries,
`
`to produce copies of relevant documents and information to claimants upon request, and
`
`to provide a full and fair review of J.S.’s claims.
`
`61. The actions of defendants in failing to provide coverage for J.S.’s medically necessary
`
`treatment are a violation of the terms of the Plan and its medical necessity criteria.
`
`SECOND CAUSE OF ACTION
`
`(Claim for Violation of MHPAEA Under 29 U.S.C. §1132(a)(3))
`
`62. MHPAEA is incorporated into ERISA and is enforceable by ERISA participants and
`
`beneficiaries as a requirement of both ERISA and MHPAEA. The obligation to comply
`
`with both ERISA and MHPAEA is part of Defendants’ fiduciary duties.
`
`63. Generally speaking, MHPAEA requires ERISA plans to provide no less generous
`
`coverage for treatment of mental health and substance use disorders than they provide for
`
`treatment of medical/surgical disorders.
`
`64. MHPAEA prohibits ERISA plans from imposing treatment limitations on mental health
`
`or substance use disorder benefits that are more restrictive than the predominant
`
`treatment limitations applied to substantially all medical and surgical benefits and also
`
`makes illegal separate treatment limitations that are applicable only with respect to
`
`mental health or substance use disorder benefits. 29 U.S.C.§1185a(a)(3)(A)(ii).
`
`
`
`12
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.14 Page 13 of 16
`
`65. Impermissible nonquantitative treatment limitations under MHPAEA include, but are not
`
`limited to, medical management standards limiting or excluding benefits based on
`
`medical necessity; refusal to pay for higher-cost treatment until it can be shown that a
`
`lower-cost treatment is not effective; and restrictions based on geographic location,
`
`facility type, provider specialty, or other criteria that limit the scope or duration of
`
`benefits for mental health or substance use disorder treatment. 29 C.F.R.
`
`§2590.712(c)(4)(ii)(A), (F), and (H).
`
`66. The explicit language of the SPD, one of the governing plan documents, state that the
`
`Defendants “are appropriate with regard to generally accepted standards of medical
`
`practice within the medical community or scientific evidence” when evaluating the
`
`medical necessity of treatment for purposes of evaluating coverage under the Plan of
`
`mental health claims.
`
`67. The medical necessity criteria used by Defendants for the intermediate level mental
`
`health treatment benefits at issue in this case are more stringent or restrictive than the
`
`medical necessity criteria the Plan applies to analogous intermediate levels of medical or
`
`surgical benefits.
`
`68. In addition, the level of care applied by Defendants failed to take into consideration
`
`J.S.’s previous history of being in her home environment, as well as the risk of decline
`
`or relapse if less intensive care than what was medically necessary was provided.
`
`Generally accepted standards of medical practice for medical and surgical rehabilitation
`
`under the Plan take into consideration safety issues and considerations of preventing
`
`decline or relapse when admission into an intermediate care facility, such as a skilled
`
`nursing or rehabilitation facility, is approved.
`
`
`
`13
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.15 Page 14 of 16
`
`69. Comparable benefits offered by the Plan for medical/surgical treatment analogous to the
`
`benefits the Plan excluded for J.S.’s treatment include sub-acute inpatient treatment
`
`settings such as skilled nursing facilities, inpatient hospice care, and rehabilitation
`
`facilities. For none of these types of treatment does BCBSRI exclude or restrict coverage
`
`of medical/surgical conditions by imposing restrictions such as an acute care requirement
`
`for a sub-acute level of care because doing so would violate not only the terms of the
`
`insurance contract, but also generally accepted standards of medical practice.
`
`70. When Defendants receive claims for intermediate level treatment of medical and surgical
`
`conditions, they provide benefits and pay the claims as outlined in the terms of the Plan
`
`based on generally accepted standards of medical practice. Defendants evaluated J.S.’s
`
`mental health claims using medical necessity criteria that deviate from generally accepted
`
`standards of medical practice. This process resulted in a disparity because the Plan denied
`
`coverage for mental health benefits when the analogous levels of medical or surgical
`
`benefits would have been paid.
`
`71. As another example of the Plan’s improper application of its criteria to evaluate the
`
`treatment J.S. received, the Defendants relied on assertions such as “your care could have
`
`been safely addressed with outpatient mental health treatment that included individual
`
`and family therapy, along with medication management” as a justification to deny
`
`treatment. In fact, J.S. had tried outpatient treatment and medication for many years prior
`
`to her admission to CALO which serves as an indicator rather than a contra-indicator of
`
`the medical necessity of treatment in a non-acute residential setting.
`
`72. In this manner, the Defendants violate 29 C.F.R. §2590.712(c)(4)(i) because the terms of
`
`the Plan and the medical necessity criteria utilized by Defendants, as written or in
`
`
`
`14
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.16 Page 15 of 16
`
`operation, use processes, strategies, evidentiary standards, or other factors to limit
`
`coverage for mental health or substance use disorder treatment in a way that is
`
`inconsistent with, and more stringently applied, than the processes, strategies, standards
`
`or other factors used to limit coverage for medical/surgical treatment in the same
`
`classification.
`
`73. Defendants did not produce the documents the Plaintiffs requested to evaluate medical
`
`necessity and MHPAEA compliance, nor did they address in any substantive capacity the
`
`Plaintiffs’ allegations that they were not in compliance with MHPAEA.
`
`74. The violations of MHPAEA by Defendants are breaches of fiduciary duty and also give
`
`the Plaintiffs the right to obtain appropriate equitable remedies as provided under 29
`
`U.S.C. §1132(a)(3) including, but not limited to:
`
`
`
`(a) A declaration that the actions of the Defendants violate MHPAEA;
`
`(b) An injunction ordering the Defendants to cease violating MHPAEA and requiring
`
`compliance with the statute;
`
`(c) An order requiring the reformation of the terms of the Plan and the medical necessity
`
`criteria utilized by the Defendants to interpret and apply the terms of the Plan to
`
`ensure compliance with MHPAEA;
`
`(d) An order requiring disgorgement of funds obtained by or retained by the Defendants
`
`as a result of their violations of MHPAEA;
`
`(e) An order requiring an accounting by the Defendants of the funds wrongly withheld by
`
`each Defendant from participants and beneficiaries of the Plan as a result of the
`
`Defendants’ violations of MHPAEA;
`
`
`
`15
`
`

`

`Case 2:21-cv-00516-DAO Document 2 Filed 08/31/21 PageID.17 Page 16 of 16
`
`(f) An order based on the equitable remedy of surcharge requiring the Defendants to
`
`provide payment to the Plaintiffs as make-whole relief for their loss;
`
`(g) An order equitably estopping the Defendants from denying the Plaintiffs’ claims in
`
`violation of MHPAEA; and
`
`(h) An order providing restitution from the Defendants to the Plaintiffs for their loss
`
`arising out of the Defendants’ violation of MHPAEA.
`
`75. In addition, Plaintiffs are entitled to an award of prejudgment interest pursuant to U.C.A.
`
`§15-1-1, and attorney fees and costs pursuant to 29 U.S.C. §1132(g)
`
`WHEREFORE, the Plaintiffs seek relief as follows:
`
`1.
`
`Judgment in the total amount that is owed for J.S.’s medically necessary treatment at
`
`CALO under the terms of the Plan, plus pre and post-judgment interest to the date of
`
`payment;
`
`Appropriate equitable relief under 29 U.S.C. §1132(a)(3) as outlined in Plaintiffs’
`
`Second Cause of Action;
`
`Attorney fees and costs incurred pursuant to 29 U.S.C. §1132(g); and
`
`For such further relief as the Court deems just and proper.
`
`DATED this 31st day of August, 2021.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`By s/ Brian S. King
`
`Brian S. King
`
`Attorney for Plaintiffs
`
`
`
`
`
`2.
`
`3.
`
`4.
`
`
`
`
`
`County of Plaintiffs’ Residence:
`Fulton County, Georgia
`
`
`
`
`16
`
`

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket