Pritchard v. Blue Cross Blue Shield of Illinois

District Court, W.D. Washington·Decided November 9, 2022·No. 3:20-cv-06145·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT TACOMA C. P., by and through his parents, Patricia CASE NO. 3:20-cv-06145-RJB Pritchard and Nolle Pritchard; and PATRICIA PRITCHARD, ORDER ON MOTION FOR CLASS Plaintiff, v. ILLINOIS, Defendant.

This matter comes before the Court on the Plaintiff C.P.’s Motion for Class Certification (Dkt. 78) and Motion to Strike the Expert Report of Scott Carr, Ph.D. (Dkt. 99). The Court has considered the pleadings filed in support of and in opposition to the motions and the file herein. The requested oral argument is not necessary to decide the motions. In this case, Plaintiff C.P., a transgender male, and his mother, Plaintiff Patricia Pritchard, claim that Defendant Blue Cross Blue Shield of Illinois (“Blue Cross”) violated the anti- discrimination provision, Section 1557, of the Affordable Care Act (“ACA”), 42 U.S.C. § 18116, when it administered a discriminatory exclusion of gender-affirming care in a self-funded health care plan governed by the Employee Retirement Income Security Act of 1974 (“ERISA”). Dkt. 1. The Plaintiffs now move for certification of a class of similarly situated people. Dkt. 78. For the reasons provided below, the motion to certify a class (Dkt. 78) should be granted.

Plaintiffs are C.P., a boy of about sixteen, and his mother, Patricia Pritchard. Dkt. 38. C.P. is a transgender male, which means that he has a male gender identity even though the sex assigned to him at birth was female. Id. C.P. has been living as a male since around 2015. Dkt. 94-1 at 135. Patricia Pritchard receives health care coverage through her employer under the Catholic Health Initiatives Medical Plan (“the Plan”) and C.P. is enrolled in that Plan as her dependent. Dkt. 81. The Plan is “self-funded” - Ms. Pritchard’s employer directly assumes financial responsibility for employees and their dependents’ health care costs. Dkt. 88-1 at 11. Defendant, Blue Cross, acts as the third-party claims administrator for the Plan. Dkt. 85-10.

As a third-party administrator, it “assemble[s] a network of providers, process[es] claims, and handle[s] provider billing.” Dkt. 88-1 at 11. C.P. has gender dysphoria. Dkt. 38. Gender dysphoria is a feeling of clinically significant stress and discomfort that can result from being transgender, or, more specifically, from having an incongruence between one’s gender identity and the sex assigned to that person at birth. Id. The American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition (“DSM-5”) recognizes gender dysphoria as a medical condition that can be extremely serious, resulting in anxiety, depression, or even death. Dkt. 38 at 6. C.P. sought coverage for his first Vantas Implant (hormone therapy) in 2016. Dkt. 94-1 at 139. Blue Cross initially approved the treatment and later informed his mother that it had made a mistake; that the treatment was not covered. Dkt. 94-1 at 137. Blue Cross paid for the treatment however, but indicated that later claims would be denied. Id. at 139. A few years later C.P. filed a claim for a second Vantas Implant and for chest reconstruction surgery; his claim

was denied by Blue Cross because “[t]ransgender services [were] not covered under the terms of the plan.” Id.; 94-3 at 2-10. The relevant Plan language in 2018 provided: “Transgender Reassignment Surgery Not Covered: Benefits shall not be provided for treatment, drugs, therapy, counseling services and supplies for, or leading to, gender reassignment surgery” (“Exclusion”). Dkt. 88-1 at 120. Of the approximately 398 of the self-funded plans that Blue Cross administers as a third-party administrator, 378, that is, 95% contain the same Exclusion that is in the Plan in which C.P. is enrolled. Dkt. 85-8 at 7. The Plaintiffs contend that Blue Cross, as a third-party administrator, has denied or will deny other enrollees in other self-funded plans gender affirming care by

relying on exclusions like the one applied to C.P. Dkt. 38. Blue Cross acknowledges that there are hundreds of members (in approximately half the self-funded plans it administers) who have received a denial based on such an exclusion. Dkt. 85-11 at 8. Blue Cross denies that its activities as a third-party administrator are subject to the anti-discrimination provisions in Section 1557 of the ACA. Dkt. 85-1 at 16-17. This opinion will first consider a class definition and then whether Fed. R. Civ. P. 23’s class action requirements are met. Lastly, this opinion will address the Plaintiff’s motion to strike. Plaintiff C.P. moves for certification of the following class: All individuals who:

(1) have been, are, or will be participants or beneficiaries in an ERISA self- funded “group health plan” (as defined in 29 U.S.C. § 1167(1)) administered by Blue Cross Blue Shield of Illinois (“BCBSIL”) during the Class Period and that contains a categorical exclusion of some or all Gender-Affirming Health Care services; and

(2) have required, require, or will require treatment with excluded Gender- Affirming Health Care services. DEFINITIONS: “Class Period” means November 23, 2016 through the termination of the litigation.

“Gender-Affirming Health Care” means any health care service—physical, mental, or otherwise—administered or prescribed for the treatment of gender dysphoria; related diagnoses such as gender identity disorder, gender incongruence, or transsexualism; or gender transition. This includes but is not limited to the administration of puberty delaying medication (such as gonadotropin-releasing hormone (GnRH) analogues); exogenous endocrine agents to induce feminizing or masculinizing changes (“hormone replacement therapy”); gender-affirming or “sex-reassignment” surgery or procedures; and other medical services or preventative medical care provided to treat gender dysphoria and/or related diagnoses, as outlined in World Professional Association for Transgender Health, Standards of Care for the Health of Transsexual, Transgender, and Gender Nonconforming People, 7th Version (2012). Blue Cross argues that this definition of the class is broader than that in the Amended Complaint and so should be stricken and that the class claims are limited by the applicable statute of limitations to events after November 2, 2018. Dkt. 93. Each argument will be considered in turn. Section (1) of the class definition proposed here is substantially the same as in the Amended Complaint (Dkt. 38 at 16). Section (2) proposed here, (individuals who meet Section (1) and “(2) have required, require, or will require treatment with excluded Gender-Affirming Health Care services”) is substantially broader than that proposed in the Amended Complaint. The Amended Complaint’s class definition only including individuals who meet Section (1) and “who were, are or will be denied pre-authorization or coverage of otherwise covered services due to [Blue Cross’s] administration of such an exclusion.” Dkt. 38 at 16. The proposed expansion

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Pritchard v. Blue Cross Blue Shield of Illinois, (W.D. Wash. 2022).

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