Mercy Health, Avectus to pay $3.5 million in class action lawsuit
Bon Secours Mercy Health and Avectus Healthcare Solutions have agreed to pay $3.5 million to end a class action lawsuit filed in 2015.
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, among others.
After receiving treatment and presenting a health insurance plan accepted by Mercy Health, plaintiffs received bills saying that they needed to pay thousands of dollars directly to the hospital – a move that plaintiffs called “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 health care facilities seek compensation for covered services from health insurance corporations, rather than the patient. Plaintiffs said that Mercy Health and Avectus’s refusal to submit claims to their health insurance companies was intentional, systematic, and unlawful.
The United States District Court for the Southern District of Ohio preliminarily approved the settlement in November.
Under the settlement, any patient of Mercy Health between Aug. 27, 2009 and Aug. 31, 2023 who was asked to pay for treatment despite presenting accepted health insurance 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 may decrease depending on the number of claims filed.
All claimants must submit this form by Jan. 22, 11:59 PM EST to receive payment.
On Feb. 8, a hearing will be held Potter Stewart U.S. Courthouse in downtown Cincinnati to finalize the conditions of the settlement.
Bon Secours Mercy Health was not able to comment on this story before deadline.
This article originally appeared on Cincinnati Enquirer: Ohio hospital system settles class action lawsuit on billing practices
