Insurer Shells Out $1.2M to Eating-Disorder Patients

New Jersey's largest health insurer has agreed to settle a class-action lawsuit brought by parents of children with eating disorders.

Horizon Blue Cross/Blue Shield of New Jersey will pay $1.2 million to about 500 patients whose claims were denied.

A lawyer for the plaintiffs said Tuesday that eating disorders such as anorexia and bulimia will be classified as a biologically based mental illness.

Previously, the company limited treatment benefits because the disorders were classified as nonbiological in nature.

Horizon spokesman Tom Rubino said the company "believes the settlement is in the best interest of the parties involved and in line with the direction of federal parity for mental health."

A federal judge in Newark overseeing the case still must sign off on the settlement.