A class settlement requiring UnitedHealthcare Insurance Co. to cover specialized liposuction procedures for 28 patients with lipedema received final approval from the court. Despite the approval, the attorneys’ fees issue remains unresolved and might remain so until late 2024.
The settlement permits more than two dozen class members to have their surgeries covered, irrespective of whether they meet the insurer’s medical necessity criteria or the amount of reimbursement. In addition, United has agreed to cover future surgeries for class members provided certain conditions are met.
Judge William Alsup, assigned to the case, granted final approval to the deal on December 22, despite previously rejecting the parties’ prior two settlement attempts. Alsup expressed concerns in previous orders that the agreement might benefit lawyers without providing substantial relief to patients.
While Alsup approved the revised deal, he awarded the patients’ lawyers only $100,000 in attorneys’ fees, a mere fraction of what they had initially requested. He noted that class members would not benefit until United confirms their claims and makes the due payments. He did not provide a timeline for when this might occur.
The judge added that he would re-visit the attorneys’ fee issue “about a year”. He set a deadline of November 5, 2024, for class counsel to provide details on the benefits ultimately received by class members.
The suit alleges that United treated liposuction as an unproven treatment for lipedema inappropriately. Lipedema is characterized by a chronic buildup of fat tissue primarily affecting women and causing pain, mobility difficulties, and joint disorders. Unresponsive to bariatric surgery or lifestyle changes, liposuction is typically the only available treatment for lipedema.
The list of those sued over liposuction coverage includes other significant industry names, such as Cigna Corp., Anthem Inc., and Aetna Life Insurance Co.
Patients are represented by Gianelli & Morris ALC and United by Hogan Lovells US LLP. More details on the progress of the case can be viewed here.
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