Sutter Health Uninsured Pricing
Class Action Lawsuit
January 2009 Update
On January 27, 2009, the California Court of Appeal upheld the order approving the settlement. The court's order will become final in March 2009 unless the objectors appeal to the California Supreme Court. We estimate that claims will be processed and paid sometime in 2009.
Sutter Health is a major California nonprofit healthcare system headquartered in Sacramento, with over 20 affiliate hospitals in its system. In December 2006, the Court granted final approval to a comprehensive and groundbreaking settlement of the action. Plaintiffs alleged that they and a Class of uninsured patients treated at Sutter hospitals were charged substantially more than patients with private or public insurance, and many times above the cost of providing their treatment. Plaintiffs also claimed that Sutter Health used unfair and aggressive collection practices against uninsured patients.
The Court did not decide in favor of either plaintiffs or Sutter Health; instead, the parties decided on this proposed settlement. By settling, both sides avoid the cost and uncertainty of a trial, and class members can receive benefits.
Under the settlement, Class members were entitled to make a claim for refunds or deductions of between 25% to 45% from their prior hospital bills, at an estimated total value of $276 million. Sutter Health agreed to maintain discounted pricing policies for uninsureds that will make Sutter's pricing for uninsureds comparable to or better than the pricing for patients with private insurance. In addition, Sutter Health agreed to maintain more compassionate collections policies that will protect uninsureds who fall behind in their payments.
To learn more about the Sutter settlement visit: http://www.uninsuredsettlement.com/.
Lieff Cabraser served as Lead Counsel in the action.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP is a sixty-plus attorney law firm that has represented plaintiffs nationwide since 1972. We have offices in San Francisco, New York and Nashville. We represent plaintiffs in class and group actions and in individual lawsuits in cases involving substantial losses. For the last seven years, The National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation.
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