Blue Shield of California, Magellan sued over mental health provider ‘ghost network’

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California patients are suing Blue Shield of California and Magellan Health over alleged inaccurate mental health provider directories, according to a class-action lawsuit filed Nov. 19.

The lawsuit said Blue Shield of California and Magellan work together to administer behavioral health benefits. The No Surprises Act requires insurers verify their provider directories every 90 days. The California Insurance Code also outlines how directories must be updated to reflect current providers. However, the lawsuit claimed “the vast majority of providers” in the directories were inaccessible or not practicing at the noted location.

“Separately and together, defendants’ representations mislead consumers to believe that members will have access to a network of providers that is robust enough to allow them to utilize their comprehensive coverage with defendants, and that they only need to look to and rely on the provider network to find necessary mental health care,” the complaint said. “In reality, defendants’ failure to maintain accurate directories makes it nearly impossible to obtain in-network mental health care.”

The plaintiffs are requesting a jury trial.

Blue Shield of California told Becker’s it does not comment on pending litigation. Becker’s also contacted Magellan and will update this story, as needed. 

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