Class Action Lawsuit Against United Behavioral Health

In a nationwide class action suit, the United States District Court for the Northern District of California has found that United Behavioral Health (“UBH/Optum”), the country’s largest managed behavioral healthcare organization, illegally denied mental health and substance use coverage based on flawed medical necessity criteria.

UBH developed their own internal flawed criteria, which were found to be inconsistent with generally accepted standards of behavioral health care, as a means to limit payments for medical care, thus decreasing their costs, and increasing profits. Indeed, the judge, Chief Magistrate Judge Joseph Spero, noted that UBH’s restrictive guidelines were intended to mitigate against the financial impact of parity.

This ruling is a monumental victory for patients and providers, and will certainly impact our mental health landscape for decades to come.

Congratulations to the attorneys, Meiram Bendat at PsychAppeal, Inc, and Zuckerman Spaeder, LLC, and all of the plaintiffs who came forward on behalf of thousands of individuals nationwide.

Here is the Judge’s complete ruling: Wit v. UBH

And here is PsiAN’s article published on Medium outlining our concerns: PsiAN’s take on the ruling against UBH — Why it’s bigger than it looks

March 2019