Horizon reaches $1.2 million settlement over eating disorder coverage

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One of New Jersey’s largest health insurers will pay $1.2 million to nearly 500 patients to settle a lawsuit over coverage for eating disorders.

medical-caseA federal judge approved a class-action settlement requiring Newark, N.J.-based Horizon Blue Cross to cover the claims for patients whose payments for anorexia and bulimia treatment were previously denied, according to the Star-Ledger.

The case was originally filed in 2006 by the parents of children with eating disorders.

The agreement, approved April 21 in a U.S. District Court, requires Horizon to classify eating disorders as a biologically-based mental illness, holding it equivalent to physical illnesses.

Horizon also agreed to pay $2.45 million in legal fees, according to the report.

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