Minnesota Health Systems Settle Class-Action Lawsuit

Published on:
21 March 2007 at 05:17 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00017448-minnesota-health-systems-settle-class-act/

As part of their class action lawsuit settlement, Minnesota-based health systems Fairview and Allina must offer discounts on unpaid medical bills or vouchers for future care to uninsured patients.

The hospitals were charged with billing uninsured patients at a higher rate than the prices negotiated by insurance companies for beneficiaries. Also, both were alleged to have used "aggressive, abusive and humiliating debt-collection practices."

According to the settlement, uninsured patients treated between February 1999 and April 2005 who have not paid their medical bills will receive a 25% discount, and those who have paid more than 75% of their bills will receive vouchers for future medical care.

As many as 200,000 patient accounts might be affected by the settlement.