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October 26, 2005
Lawsuit helps Health Savings Account owners
In the first decision of its kind in the country, Circuit Court Judge Richard Baldwin certified a class action lawsuit filed on behalf of thousands of uninsured health insurance patients of Legacy Health System ("Legacy"). The lawsuit accuses Legacy of consistently overcharging its poorest and most vulnerable patients -- the uninsured -- by billing them the highest rates without their knowledge. The uninsured as well as Health Savings Account holders stand to benefit from this lawsuit.
The prices these hospitals charge the uninsured far exceed the amount they require the insured patients to pay for the same exact services.
This is a common practice all across the country. Hospitals have an “official” price that almost no one (other than the uninsured) pays. They then give “discounts” to all insurance companies. The person who is paying for healthcare out of their own pocket is thus screwed.
The lawsuit is filed Multnomah County Circuit Court of Oregon and is part of nationwide litigation against nonprofit hospitals for price gouging and price discrimination against the uninsured commenced by Richard Scruggs and attorneys around the country in June 2004.
Hopefully, the end result will be honest and transparent pricing by hospitals, allowing consumers to compare rates and make informed decisions about where to obtain their medical care.
Learn more about Health Savings Accounts at HSA for America
Posted by Wiley Long at October 26, 2005 09:32 AM