In the case of private insurance, for example, through Obamacare, when an insurance company refuses to pay for out-of-network medical treatment, the cost of the services are out of pocket for the parents. We’re asked sometimes whether something like this amounts to insurance bad faith.
Obviously, lawsuits are expensive, and so we have to evaluate whether it would make economic sense for you to pursue. However, even if the dollar amount isn’t very much, if the insurance company’s actions are egregious and would warrant bad-faith damages, there may be a possibility to collect punitive damages. So, if the insurance company acted really unscrupulously, then even if your out-of-pocket expenses for the medical treatment aren’t very much, you may still have a case and you’ll want to talk with a lawyer about it.