Panel Rejects Suit Alleging Employer Insurance Bias

SAN FRANCISCO —  Workplace insurance policies can legally provide better coverage for physical disabilities than for mental disabilities, a federal appeals court ruled Monday.

The U.S. 9th Circuit Court of Appeals rejected a discrimination suit by a Seattle-area woman who became unable to work in March 1994 because of severe depression. Her disability benefits lasted two years. Had she been disabled for physical reasons, the benefits would have continued until age 65.

The woman, Helen Weyer, sued her employer, 20th Century Fox Film Corp., for whom she worked as an administrator, and UNUM Life Insurance Co., which provided the group policy offered by Fox to its employees.

The suit claimed the different treatment of mental and physical disabilities violated the Americans With Disabilities Act, which bolsters the rights of the disabled.

The suit was dismissed by U.S. District Judge William Dwyer. The U.S. Equal Employment Opportunity Commission, which enforces the Americans With Disabilities Act, supported Weyer’s appeal.

“Insurance distinctions that apply equally to all employees cannot be discriminatory,” said Judge Andrew Kleinfeld in the 3-0 ruling. He said Fox offered Weyer the same policy available to other employees, and was not required to treat all disabilities equally.

Kleinfeld also said the Americans With Disabilities Act does not prevent insurers from deciding which disabilities to cover.

Lawyers for the companies did not return telephone calls. No phone number was listed for Weyer’s lawyer, Lonnie Davis of the Disabilities Law Project in Seattle.