SUTTER HEALTH CLASS ACTION SETTLEMENT
Class Action Capital has identified that many self-funded payors are likely eligible for compensation in connection with the Sutter Health Settlement.
Many companies that we speak with are eligible for these refunds but do not wish to pursue the claims filing internally due to limitations on their time and resources. Additionally, many firms’ data retention policies limit the relevant documentation they can readily gather.
Class Action Capital specializes in claim preparation and filing for over 5,000 corporate clients across the country. Our offer is to assist your company in recovering your pro-rata share of the settlement funds by handling all the heavy lifting – including data collection and analysis, claim preparation and filing – on your behalf. The only thing Class Action Capital needs to get started is for your company to complete our Claim Authorization Form (below). Once completed, we will get to work analyzing your claim to prepare and file for the impending deadlines in a timely manner.
What is this case about?
UEBT and the California Attorney General (collectively, “Plaintiffs”) alleged that defendants violated California antitrust and unfair competition laws by including provisions in their contracts with major health insurance companies that restricted price competition defendants and other general acute care hospitals and other providers in Northern California. This resulted in self-funded payors being overcharged for general acute hospital services and ancillary products.
The defendants have collectively settled these allegations for $575,000,000 and have agreed to an injunction against engaging in similar conduct in the future. The net fund will be distributed to eligible class members pursuant to a settlement claims process.
Who are the defendants?
In this case, the Defendants are Sutter Health and the following affiliates:
Sutter East Bay Hospitals (predecessor of Sutter Bay Hospitals); Sutter West Bay Hospitals (n/k/a Sutter Bay Hospitals); Eden Medical Center (formerly d/b/a of Sutter Medical Center, Castro Valley) (predecessor of Sutter Bay Hospitals); Eden Medical Center; Sutter Central Valley Hospitals (predecessor of Sutter Valley Hospitals); Mills-Peninsula Health Services (predecessor of Sutter Bay Hospitals); Sutter Health Sacramento Sierra Region (n/k/a Sutter Valley Hospitals); Sutter Coast Hospital; Palo Alto Medical Foundation for Healthcare, Research and Education (n/k/a Sutter Bay Medical Foundation and d/b/a Palo Alto Medical Foundation for Health Care, Research and Education); and Sutter Medical Foundation (n/k/a Sutter Valley Medical Foundation).
Who is eligible to collect under the settlement?
The settlement fund will benefit and release the claims of all self-funded payors that are (1) citizens of California or arms of California and (2) compensated Sutter Health for general acute care or ancillary products:
- At any time between January 1, 2003 and July 25, 2016 at prices set by contracts between Sutter and Aetna;
- At any time between January 1, 2003 and December 31, 2016 at prices set by contracts between Sutter and Anthem;
- At any time between January 1, 2003 and June 25, 2016 at prices set by contracts between Sutter and Blue Shield;
- At any time between January 1, 2003 and April 30, 2016 at prices set by contracts between Sutter and Cigna; or
- At any time between January 1, 2003 and June 30, 2016 at prices set by contracts between Sutter and United Healthcare/PacifiCare.
Pursuant to the settlement, your entity is considered a citizen of California if it is organized under California law or has its principal place of business in California, and was a citizen of California on April 7, 2014 regardless of whether it ceased to be a citizen after that date. Your entity is an arm of California if it is a governmental entity.
How do I know if I am a self funded payor?
Under the settlement, your entity is a self-funded payor if it funds a health plan for its employees or members (eg: employer, healthcare benefit trust, union benefit trust, school district) or if your entity offers its employees or members a self-funded health plan. Your entity can be a self-funded payor even if the health plan is administered by an insurance company or third-party administrator.
What does this settlement provide?
The defendants will pay $575,000,000. The net fund will be distributed to eligible class members on a pro rata basis. The administrator and/or class counsel will furnish eligible class members with a notice of relevant payments based on the health plan claims data produced in the lawsuit. This amount will then be used to calculate each class member’s pro rata share. Class members will have the opportunity to dispute and/or supplement this data with their own data.
The deadline to exclude yourself from the case passed in 2018. At this time, the case is pending court approval. The claims process will get underway after the settlement is approved by the court.
For more information, please see the court-approved website: www.sutterhealthlawsuit.com