A federal judge in New York has approved a landmark class action settlement between health insurer Aetna and a lesbian couple, who accused the company of discriminating against LGBTQ+ couples seeking fertility treatment.
Aetna, a subsidiary of CVS Health Corp., agreed to a preliminary settlement earlier this year to cover artificial insemination for all policyholders.
The judge’s verdict marks the first time LGBTQ+ policyholders can be reimbursed for fertility coverage after originally being denied.
Lead plaintiff Emma Goidel and her partner, Ilana Caplan, filed the lawsuit against Aetna in 2021, alleging they were denied coverage for fertility treatment several times.
The couple spent over $50,000 on out-of-pocket expenses to conceive their child, while straight policyholders were able to receive faster and cheaper fertility coverage.
According to the National Women’s Law Center, which represented the plaintiffs, Aetna’s policy allowed a female beneficiary with a male partner to receive coverage for infertility treatments after six months to one year of unsuccessful intercourse.
However, the policy stated that LGBTQ+ couples were required to pay out of pocket for the first six to twelve cycles of artificial insemination before becoming eligible for coverage. Plaintiffs argued this policy violated Section 1557 of the Affordable Care Act, which prohibits discrimination in health care.
“LGBTQ+ folks are as deserving of becoming parents as anyone else on this planet,” Goidel told NBC News.
Although Aetna has denied liability, the company has agreed to modify its policy to provide equal access to treatment regardless of sexual orientation and introduce a new health benefit plan that includes artificial insemination for all members.
As part of the settlement, which was agreed to in preliminary approval in October, Aetna will also compensate members of certain New York commercial insurance plans who were or would have been denied reimbursement for artificial insemination. A $2 million fund will be set up to reimburse each class member, and all eligible claims will be reprocessed.
“I hope that when people can start signing up to be compensated, queer folks who have gone on the journey to become parents and faced barriers from insurance feel that they’re not alone in that,” Goidel said.
