IU Health Sued in Consumer Fraud Lawsuit
IU Health North Hospital was hit with a consumer fraud lawsuit that claims it charged patients without health insurance more for their treatments than it charged patients who were insured.
Indiana hospitals are watching the case closely. At the core of the case is long-standing state law that holds that customers must be charged a "reasonable" price -- the price charged most customers -- if a contract for a service doesn't specify a fee or price.
College student Abby Allen claims that she was charged $15,641.64 to treat an infection in 2008 when she allegedly should have been billed $7,308.78 for the same treatment based on the discounts IU Health offered patients, according to the Associated Press.
Another plaintiff in the consumer fraud lawsuit, police trainee Walter Moore, alleges he was charged $1,138 in 2009 to treat injuries after a car accident but that he would have been charged much less if he was insured.
Both plaintiffs claim that their bills were sent to collection agencies, which negatively affected their credit scores.