In a case that has been winding through the legal system for more than eight years, including two trips to the Court of Appeals for the Sixth Circuit and back, a $3.5 million settlement has been reached in a debt collection case involving two healthcare providers.
The Background: Back in 2015, the plaintiffs filed suit, alleging the defendants violated the Fair Debt Collection Practices Act by sending letters to the plaintiffs’ attorneys that stated the amount that was owed and requesting that, in order to prevent collection efforts against the plaintiffs, that the attorneys sign a “letter of protection” against any settlement or judgment.
- The letters demonstrate that the defendants sought compensation for medical expenses, even though both individuals had health insurance and the insurance carrier had contracts with the healthcare providers.
The Settlement: The class includes anyone who had a health insurance plan accepted by the healthcare provider who were patients at a facility in Ohio between 2009 and 2023 and who thereafter paid or were requested to pay any amount of money for the treatment they received, other than for co-pays or deductibles.
- Class members will receive a cash payment of $25 and a cash payment equal to 50% of the amount that was paid to the healthcare provider. The proposed class consists of 12,000 members.
