Sutter Health Will Pay Out $575 Million To Settle Claims
An American non-profit health delivery system provider, Sutter Health, will pay out a $575 million settlement to resolve allegations that they have breached competition law.
Class Action Lawsuits
The United Food and Commercial Workers (UFCW) & Employers Benefit Trust filed a class action lawsuit against Sutter Health in 2014.
The Sutter Health class action lawsuit asserts that the company has infringed the Unfair Competition Law and Cartwright Act.
It adds that Sutter Health has provided health plan contracts that implemented anti-tiering, price secrecy, and all or nothing schemes.
In 2018, residents of California had filed another class action lawsuit containing similar claims.
The two lawsuits were merged into 1 case in May 2018.
Sutter Health has agreed to pay $575 million to cover settlement claims for the combined lawsuit.
According to the settlement terms, all eligible class members will obtain a portion of the settlement fund.
The amount that each class member will receive will be computed based on the following criteria:
- Since price varies depending on the hospital, the hospital where the class member made the payment will be taken into account during computation.
- Since the price changes over time, the exact time when the payment was made will also be considered during the calculation.
Individuals who meet all of the following conditions are considered as class members:
- Individuals residing in the state of California
- Individuals must have been recognized as California citizens on April 7, 2014, to be considered in the plan.
- Self-funded payors of a Sutter Health plan
- Self-funded payors are any entities that have paid for a health plan, including schools, employers, and union benefit trusts.
- The health plan can be availed for their employees or members. It can also be provided by a third-party organization or a health insurance company.
- Individuals who have paid Sutter Health for their ancillary and hospital services
- Entities who have availed health services for their employees or members from a Sutter Health general acute care hospital are covered.
- Individuals who have paid for Sutter Health services, regardless of another entity paid for them, are considered. The plan can be paid through a third party, an insurance company, or directly to Sutter Health.
The eligible class members are further filtered and divided into the following categories:
- Individuals who have paid for a contract by Sutter and Cigna from January 1, 2003, to April 30, 2016
- Individuals who have paid for a contract by Sutter and Blue Shield from January 1, 2003, to June 25, 2016
- Individuals who have paid for a contract by Sutter and Pacificare or United Healthcare from January 1, 2003, to June 30, 2016
- Individuals who have paid for a contract by Sutter and Aetna from January 1, 2003, to July 25, 2016
- Individuals who have paid for a contract by Sutter and Anthem from January 1, 2003, to December 31, 2016
Eligible class members can access the claim form after March 29, 2021. They would need to file a claim on or before May 28, 2021, to receive their compensation.
The deadline for objecting is on May 28, 2021.
Editor’s Note on Sutter Health Settlement For $575 Million:
This article is published to inform you of the latest settlement to be paid by Sutter Health to resolve contract claims.
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