CLASS ACTION SETTLEMENT REQUIRES KAISER TO PROVIDE OVER 100,000 CALIFORNIA MEMBERS LIVING WITH SEVERE MENTAL ILLNESS ACCESS TO MEDICALLY NECESSARY RESIDENTIAL TREATMENT
On January 16, 2020, the California Superior Court for the County of Alameda granted final approval of a class action settlement in the case Charles Dion v. Kaiser Foundation Health Plan, Inc., Case No. RG1718903. Mr. Dion, acting as the class representative, and the Law Offices of Scott Glovsky brought suit against Kaiser to address allegations that Kaiser categorically denied coverage and access to all residential treatment for severe mental illness, other than short term acute treatment, without regard to medical necessity. The settlement followed the Court’s order certifying a class to address the propriety of Kaiser’s residential treatment criteria. Under the terms of the court-approved settlement, Kaiser has agreed to make systemic reforms addressing these issues. Specifically, Kaiser will implement new residential treatment guidelines which include coverage for non-crisis residential treatment. As a result of this settlement, over 100,000 Kaiser members will now have access to necessary residential mental health treatment.