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NC Baptist Hospitals Refuse Tax Payments For MedCost Settlement

March 22, 2012

A U.S. District Court judge ruled in favor of roughly 15,000 employees of North Carolina’s Baptist Hospitals for a class action lawsuit alleging that their insurance provider required more fees for their coverage than other corporate clients were required to pay. The judge awarded the group a settlement of $5.38 million to be paid no later than April 24.

According to The Winston-Salem Journal, NC Baptist Hospitals is attempting to lower the total amount they must pay out by claiming they should not have to pay taxes on the settlement, which could delay when recipients receive their money. Lawyers for the group filed paperwork with the courts Friday that say it’s not required to pay any amounts beyond those listed in the settlement for the MedCost Health plan.

After other minor expenses were deducted, lawyers say that approximately $1.31 million dollars should be taken off the final payout, lowering that number to $4.07 million. Baptist argues that current and ex-employees who are receiving the settlement should cover those federal tax expenses and other costs.

Counsel for those filing the class action lawsuit have until tomorrow to respond to Baptist’s filing.

The North Carolina Business Dispute Attorneys with HensonFuerst Injury Lawyers say that insurance companies are required by law to offer fair, ethical, and transparent coverage to their policyholders. Failing to offer coverage in this manner could be considered unfair and negligent on the part of the insurance company.

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