The deal, which was filed Wednesday in US District Court for the District of Massachusetts, settles a 300-person class action lawsuit challenging Raytheon’s alleged practice of covering restorative speech therapy for people who have lost their verbal communication skills, but people can’t cover the non-restorative therapy of a person who never developed that ability in the first place.
A Raytheon employee whose 5-year-old child NR underwent the latter treatment said the distinction was an unacceptable limitation of coverage under the Mental Health Parity and Addiction Equity Act (Mental Health Parity and Addiction Equity Act). claims. that they cover medical and surgical interests;
According to the motion, Raytheon amended its health plan to cover medically necessary speech therapy services for autism spectrum disorders and other conditions previously thought to be irreversible. The settlement requires the company to maintain this expanded coverage for at least the next five years.
The settlement is subject to the approval of Judge Richard G. Stearns. In 2020, Stearns blocked an employee’s family from challenging Raytheon’s compensation practices through his ERISA benefit claim.
On appeal, the Department of Labor filed an opinion objecting to this reasoning, stating that health insurance policyholders who are eligible for compensation without a violation of the Equality Act may seek relief through a claim for ERISA benefits. I claimed.
The U.S. Court of Appeals for the First Circuit reinstated NR’s claim to ERISA’s interests in January, largely adopting the Department of Labor’s view, without specifically discussing the agency’s profile.
The class is represented by Sirianni Youtz Spoonemore Hamburger PLLC and Fair Work PC and can sue up to $150,000 in attorney fees. Conn Kavanaugh Rosenthal Peisch & Ford LLP represents Raytheon.
This is a Motion to Approve the Settlement of NR v. Raytheon Co., D. Mass., No. 1:20-cv-10153, September 14, 2022.