BJC Healthcare Class Action Settlement with Uninsured Patients Hits Snag

Instead of signing off on a class action settlement between St. Louis-based BJC Healthcare and uninsured patients affected by the hospital system’s pricing policies, a federal judge is considering whether or not to reopen the case.

According to a recent report in the St. Louis Post-Dispatch, the judge delayed approval after several members of the class action lawsuit filed objections to the settlement, which would give uninsured patients a 25 percent self-pay discount on inpatient and outpatient services, plus any charity care discounts for which they may qualify.  Uninsured patients who pay their bills within 30 days would receive an additional 5 percent discount, the newspaper reported. 

The settlement also called for uninsured patients who received care at BJC since January 1, 1999, and paid all or part of their bill, to receive refunds or bill reductions, if eligible. And the uninsured discounts will continue through at least 2012.

The judge had planned to approve the settlement last week. However, Stuart R. Berkowitz, the attorney representing the objecting class-action members, filed a motion saying the settlement didn’t address BJC’s two-tier payment system that favors insured patients.  He is seeking a settlement that, at the very least, matches Tenet Healthcare Corp.’s policy of granting uninsured patients its lowest negotiated rate with an insurer, the Post-Dispatch reported.

His motion is supported by St. Louis Area Jobs for Justice, the Missouri Association of Social Welfare and Community Catalyst, a national policy and advocacy organization.

“What we want is a reasonable attempt to deal with a dual system of billing where uninsured patients are charged more than anyone else,” Berkowitz told the Post-Dispatch.

BJC Healthcare spokeswoman June Fowler told insideARM that a ruling is expected any day.