Horizon Blue Cross of New Jersey has reached a settlement agreement in a lawsuit over its lack of coverage for eating disorders. The settlement requires Horizon to expand coverage for more than one million eating disorder patients who are currently insured through the company.

Horizon also agreed to treat any future eating disorder claims by 1.5 million of its 3.3 million insureds as they would claims for biologically-based mental illnesses (BBMI) like schizophrenia - reforms that will cost the company an estimated $17.8 million. (Source: New Jersey Law Journal)

Horizon will also be required to pay nearly $2.5 million in restitution for previously refusing to cover treatment for eating disorders.

Experts estimate that as many as eight million Americans (seven million women and one million men) suffer from anorexia nervosa, bulimia nervosa, binge eating disorder, or another type of disordered eating. In the absence of appropriate treatment, the health effects of eating disorders can range from devastating to deadly.

Labels: eating disorders, lawsuit, insurance

Posted By: Aspen/CRC