Firm Client’s Parity Act Claim Defeats Motion To Dismiss, Establishes Law

March 2021 | News

Firm client Collyer Smith defeated a motion to dismiss brought be defendants Golden Rule Insurance Company, Savvysherpa Administrative Services, LLC and United Healthcare Services, Inc. that sought to dismiss Smith’s Parity Act claims. The claims arise out of defendants’ practice of allegedly presumptively denying insurance coverage for urinalysis tests and intensive outpatient services in a manner that is “out of parity” with how the defendants treat requests for coverage for analogous medical services. The significance of the decision is that it validates Smith’s federal Parity Act claims brought as a breach of contract under the common law. This might be the first time a court, in this case the Southern District of Indiana, has validated a federal Parity Act claim brought under the common law as a breach of contract. The case is styled as a class action.

Smith is represented by Jordan Lewis, P.A., Delaney & Delaney LLC, Greg Coleman Law, Crueger Dickson LLC and Wexler Wallace LLP.

Read the decision here.

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