Ohio Hospital System Settles Class Action Lawsuit Alleging Violations Of The Fair Debt Collection Practices Act (FDCPA)
Bon Secours Mercy Health and Avectus Healthcare Solutions have both agreed to pay $2.5 million to end a class action lawsuit filed in 2015. According to the lawsuit, plaintiffs accused both the Ohio hospital system and the healthcare consulting company of violating the Ohio Consumer Sales Practice Act and the Fair Debt Collection Practices Act.
After receiving treatment and presenting a health insurance plan accepted by the hospitals, plaintiffs said that they received bills indicating that they needed to pay thousands of dollars directly to the hospital. The plaintiffs characterized this move as “an effort to increase profits” and “force patients” to pay higher rates than what would have been covered by their health insurance companies.
With the exception of copayments and deductibles, Ohio law requires that healthcare facilities seek compensation for covered services from health insurance companies rather than directly from the patient. The plaintiffs said that Mercy Health and Avectus’s refusal to submit claims to their health insurance companies was intentional and illegal.
The settlement was approved by the United States District Court for the Southern District of Ohio. Under the terms of the settlement, any patient of Mercy Health between August 27, 2009, and August 31, 2023, who was asked to pay for treatment despite presenting an accepted health insurance policy is eligible to receive a $25 base payment. In addition, those who paid for treatment will receive a cash payment of 50% of what they paid, though this could decrease based on the number of claims filed.
Understanding the FDCPA and Ohio Consumer Sales Practices Act
The Ohio Consumer Sales Practices Act requires hospitals to seek reimbursement through accepted health insurance policies as opposed to seeking money directly from the consumer. In this case, the hospitals in question were accused of sending their patients bills even though they had health insurance policies that would have covered the cost of care.
The lead plaintiff alleged that he went to Mercy after sustaining a slip and fall on a wet floor. He sought treatment from the hospital and informed them that he had a health insurance policy. Mercy treated him for his injuries but sent him a bill directly without ever submitting a claim to his health insurance provider. Ultimately, the patient was sent a bill for over $7,000 despite having health insurance that covered the expenses.
Talk to a Columbus, OH Consumer Sales Practices Act Attorney Today
Have you been ripped off by a hospital or other business? If so, you may be entitled to file a lawsuit against the business and recover damages related to their violations of Ohio’s Consumer Sales Practice Act. The law protects consumers from unfair or unconscionable business practices. You may be entitled to recover money damages for every violation of Ohio or federal law. Call the Columbus FDCPA attorneys at the Kohl & Cook Law Firm, LLC today to schedule an appointment, and learn more about how we can help.
Source:
cincinnati.com/story/news/2024/01/11/mercy-health-ohio-reaches-settlement/72191930007/
