Minnesota Attorney General and Allina Hospitals & Clinics settle suit on MedCredit interest
MINNEAPOLIS 04/14/2009--The Minnesota Attorney General's Office and Allina Hospitals & Clinics announced today that they have reached a settlement of the suit filed by the Attorney General on January 22, 2009, against Allina relating to interest charged to users of MedCredit, Allina's consumer medical financing program.
Under the terms of the settlement, Allina will reimburse patients who were charged more than 8 percent interest on their MedCredit account the amount of money those patients paid over 8 percent between January 1, 2007 and January 31, 2009. On February 1, 2009, the interest on all current and future MedCredit accounts was capped at 8 percent. The total amount Allina will reimburse to these patients will be at least $1.1 million, covering thousands of patients.
For patients eligible for the refund who currently have a balance on their MedCredit account, the refund will be applied to their existing balance. If the refund is greater than their existing balance, the difference will be held in the account and applied to future charges at Allina.
All patients who are eligible for a refund under the settlement will receive a letter from Allina with more detailed information.
"We're very pleased that through a process of open dialogue and collaboration with the Attorney General we were able to resolve this matter in the best interest of our patients," said Ken Paulus, Allina president and chief operating officer. "In this tough economy, when more and more people are without insurance and those who are insured have to pay an increasing share their health care costs from their own pockets, Allina and the Attorney General share the goal of ensuring that all patients are treated with fairness and respect when it comes to paying their health care bills. At Allina, we pledge to do all we can to fulfill that goal."
"I realize that hospitals are facing their own financial pressures as a result of the bad economy and lack of adequate insurance coverage for patients," said Minnesota Attorney General Lori Swanson. "I commend Allina and its president, Ken Paulus, for constructively resolving a problem in a way that helps patients."
About Allina Hospitals & Clinics
Allina Hospitals & Clinics is a not-for-profit health care system of hospitals, clinics and other patient care services that provides care to communities throughout Minnesota and western Wisconsin and employs more than 22,000 people. Allina Hospitals & Clinics facilities, services and jobs can be found online at www.allina.com.
Contacting the Minnesota Attorney General's Office
Consumers with questions or concerns about a consumer issue may contact the Attorney General's Office by calling 1-800-657-3787 or 651-296-3353.
Consumers also may download a Consumer Complaint Form from the Attorney General's website at www.ag.state.mn.us and returning the completed form to: 1400 Bremer Tower, 445 Minnesota Street, St. Paul, MN 55101-2131.
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