On Thursday, the Commonwealth Court of Pennsylvania ruled that insurance companies must cover drug and alcohol treatment costs for policy holders who were referred by a doctor or psychologists. The ruling solidifies a 1989 state law which required insurance companies to cover these types of treatment services.

"Aetna, Independence Blue Cross, the Insurance Federation of Pennsylvania and other managed care groups sued the state Insurance Department, arguing that insurers should be allowed to review drug and alcohol treatment referrals to keep costs down and make sure treatment is appropriate."

The court, however, determined that treatment which is prescribed by a doctor or psychologist needs no review. Some argue that this ruling will drive up health care costs, while others call it a 'life-saving law'. Read more at HeraldStandard.com.

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Labels: insurance, rehab, treatment