Gary K., individually and on behalf of T.K. a minor v. Anthem Blue Cross and Blue Shield, Assurant Inc. Benefit Plans Committee, and Assurant Health & Welfare Benefit Plan

CourtDistrict Court, S.D. New York
DecidedSeptember 30, 2025
Docket1:24-cv-07878
StatusUnknown

This text of Gary K., individually and on behalf of T.K. a minor v. Anthem Blue Cross and Blue Shield, Assurant Inc. Benefit Plans Committee, and Assurant Health & Welfare Benefit Plan (Gary K., individually and on behalf of T.K. a minor v. Anthem Blue Cross and Blue Shield, Assurant Inc. Benefit Plans Committee, and Assurant Health & Welfare Benefit Plan) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Gary K., individually and on behalf of T.K. a minor v. Anthem Blue Cross and Blue Shield, Assurant Inc. Benefit Plans Committee, and Assurant Health & Welfare Benefit Plan, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK GARY K., individually and on behalf of T.K. a minor, Plaintiffs, -against- 1:24-cv-07878 (ALC)

ANTHEM BLUE CROSS AND BLUE OPINION & ORDER SHIELD, ASSURANT INC. BENEFIT PLANS COMMITTEE, and ASSURANT HEALTH & WELFARE BENEFIT PLAN, Defendants. ANDREW L. CARTER, JR., United States District Judge: Plaintiff Gary K. brings this ERISA action individually and on behalf of his minor son, T.K. Plaintiff asserts a claim for benefits, for violation of the Mental Health Parity and Addiction Equity Act, and for statutory penalties against Defendants Anthem Blue Cross and Blue Shield, Assurant Inc. Benefit Plans Committee, and Assurant Health & Welfare Benefit Plan. Defendants move to partially dismiss the amended complaint for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). For the reasons stated below, the motion is granted in part as to the claim for statutory penalties and otherwise denied. BACKGROUND I. Factual History Plaintiff Gary K. (“Plaintiff”) is a participant in a self-funded Assurant Health & Welfare Benefit Plan (the “Plan”) under the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. §1001 et. seq. See ECF No. 38 at 1, ¶ 5 (“Amended Complaint” or “AC”). Defendant Anthem Blue Cross and Blue Shield (“Anthem”) was the third-party claims administrator for the Plan at all relevant times. See id. ¶¶ 2–3. Defendant Assurant Inc. Benefit Plans Committee (“Assurant”) was the Plan Administrator. See id. at 1; ECF No. 45 at 2; ECF No. 42 at 22 n.12. T.K. is Plaintiff’s minor son and a beneficiary of the Plan. See AC ¶¶ 1, 5. a. T.K.’s Treatment and Claim

Beginning September 28, 2022, T.K. received medical care and treatment at Triumph Youth Services (“Triumph”), a residential treatment facility in Utah for adolescents struggling with mental health, behavioral health, and substance abuse. See id. ¶ 6. T.K. was admitted to Triumph due to his struggles with “defiance, substance abuse, poor school performance, suicidal ideation, negative self-image, low motivation, and theft.” Id. ¶ 10. On October 3, 2022, Anthem denied Plaintiff’s claim for payment of T.K.’s treatment. See id. ¶ 11. Plaintiff alleges that Anthem sent him two letters dated October 3, 2022, which denied his claim for separate reasons. See id. ¶¶ 11–12. The first denied his claim because the treatment was not medically necessary (“medical need basis”). See id. ¶ 11. The second denied his claim because Triumph was not accredited and therefore did not qualify for coverage under the Plan (“accreditation basis”). See id. ¶ 12. That

letter also stated that “other in-network alternatives were available and recommended treatment at the Ridgeview Institute,” a facility in Plaintiff’s home state of Georgia. Id. ¶ 13. b. Prelitigation Appeals Process On March 27, 2023, Plaintiff submitted an appeal of the denial, noting the incongruity in the two letters and arguing “T.K.’s treatment was medically necessary and a covered benefit under the terms of the Plan.” Id. ¶ 15. He specifically requested Anthem review the full dates of services as the original denials had not listed them. See id.

2 In appealing the accreditation basis, Plaintiff cited to the Plan’s language to argue that Triumph was covered. See id. ¶ 20. He recited the definition of a residential treatment center: A Provider licensed and operated as required by law, which includes: • Room, board and skilled nursing care (either an RN or LVN/LPN) available onsite at least eight hours daily with 24-hour availability. • A staff with one or more Doctors available at all times. • Residential treatment takes place in a structured facility-based setting. • The resources and programming to adequately diagnose, care and treat a psychiatric and/or substance use disorder. • Facilities are designated residential, subacute, or intermediate care and may occur in care systems that provide multiple levels of care. • Is fully accredited by The Joint Commission (TJC), the Commission on Accreditation of Rehabilitation Facilities (CARF), the National Integrated Accreditation for Healthcare Organizations (NIAHO), or the Council on Accreditation (COA). Id. (emphasis in original); see also ECF No. 43-1 at 204–05 (the 2022 Plan). Plaintiff contends that this language is ambiguous as “which includes” does not necessarily mean each bullet point is required. See id. ¶ 21. In his appeal, Plaintiff asserted that Triumph did in fact meet the Plan’s mandatory requirements, citing the fact that “Anthem’s Utah sister organization Regence BlueCross BlueShield, had paid for treatment at Triumph during the time T.K. was at treatment there.” Id. ¶ 24; see also id. ¶ 23. Plaintiff further argued that even if the accreditation requirements were applicable, they violated the Mental Health Parity and Addiction Equity Act (“Parity Act”) because coverage at analogous medical facilities was not similarly restricted. See id. ¶¶ 25–26. Plaintiff specifically pointed to skilled nursing facilities, for which he argued accreditation was optional under the Plan. See id. ¶ 27. Plaintiff additionally requested a copy of all documents under which the Plan was operated, including all governing plan documents, the summary plan description, any insurance policies in place for the benefits he was seeking, any administrative service agreements [(“ASAs”)] that existed, any clinical guidelines or medical necessity criteria utilized in the determination (along with their medical or surgical equivalents, whether or not these were used), together with any reports

3 or opinions regarding the claim from any physician or other professional, along with their names, qualifications, and denial rates (collectively the “Plan Documents”). Id. ¶ 30. On July 13, 2023, Anthem upheld the claim denial on the accreditation basis. See id. ¶ 31. Anthem further determined the Plan did not violate the Parity Act because skilled nursing facilities were also subject to accreditation requirements. See id. “The letter also included documentation which included Gary’s appeal, the accompanying exhibits, the denial letters Anthem had heretofore provided, and a copy of the 2022 summary plan description. The other materials Gary requested were not provided.” Id. ¶ 33. Plaintiff requested the withheld materials again in a letter dated August 25, 2023 and addressed to Anthem and Assurant. See id. ¶ 37. After receiving no

response, he sent the same letter on April 4, 2024. See id. ¶ 38. On August 4, 2023, Triumph obtained accreditation from the Commission on Accreditation of Rehabilitation Facilities (“CARF”). See id. ¶ 46; ECF No. 31 at 8; ECF No. 42 at 14; ECF No. 45 at 4 n.18. That same day, Triumph filed a request to extend T.K.’s stay with Anthem. See AC ¶ 34. On October 2, 2023, Anthem upheld its denial again, this time under the medical necessity basis. See id. Anthem did so again on May 30, 2024, stating that the medical necessity basis justified its denial of dates of service from September 22, 2022 onward. See id. ¶ 35–36. Allegedly the medical expenses incurred total more than $175,000. See id. ¶ 40. II. Procedural History On July 12, 2024, Plaintiff filed his complaint against Defendants in United States District

Court for the District of Utah. See ECF No. 1. On October 11, 2024, the parties filed a consent motion to transfer the action to the Southern District of New York. See ECF No. 17. Four days

4 later, Judge Dale A. Kimball granted the motion, see ECF No. 18, and the action was transferred to this Court, see ECF No. 19. On December 11, 2024, Defendants filed a motion to dismiss the complaint. See ECF No. 29. In response, Plaintiff requested leave to amend the complaint.

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Gary K., individually and on behalf of T.K. a minor v. Anthem Blue Cross and Blue Shield, Assurant Inc. Benefit Plans Committee, and Assurant Health & Welfare Benefit Plan, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gary-k-individually-and-on-behalf-of-tk-a-minor-v-anthem-blue-cross-nysd-2025.