HARRISBURG – The Attorney General’s Health Care Section has reached a $100,000 settlement resolving a civil lawsuit filed against a Texas-based aviation parts manufacturing business accused of failing to pay its portion of health care premiums for Harrisburg area employees while continuing to deduct employee contributions from paychecks – leaving former workers to face unexpected medical bills.
Attorney General Tom Corbett said the agreement, known as a consent judgment, was filed in Dauphin County Court of Common Pleas against Turbine Airfoil Designs (TAD), a Texas corporation, formerly operating at 1400 North Cameron St, Harrisburg.Â
The settlement also includes the following TAD corporate officers:
. Chief executive officer John A. Walton, of Dallas, Texas.
. President Benjamin C. Frazier, of Harrisburg.
. Chief financial officer Anne C. Richie, of Beachwood, Ohio.
“The goal of our lawsuit and the purpose of this settlement are to assist former TAD employees who were saddled with medical expenses that they believed were covered by their company health insurance plan,” Corbett said.
According to the lawsuit, TAD fell behind on premium payments to Capitol Blue Cross for employee health care coverage in August 2008, resulting in multiple delinquency notices that were not disclosed to employees. Additionally, a payment plan that was established between TAD and Capitol Blue Cross was not completed by the company, eventually resulting in the cancellation of all coverage.
Corbett said that employees were left particularly vulnerable because they allegedly did not receive notice until March 17, 2009 that their company health plan had been cancelled and that their PPO coverage had actually ceased nearly six months before, on October 9, 2008. Numerous TAD employees sought medical care during the period between October 2008 and March 2009, not knowing that payment of their claims had been suspended or that their PPO health care benefits had effectively stopped.
“Company officials allegedly knew, or should have known, that non-payment of health insurance premiums would leave workers vulnerable, but failed to warn their employees or take steps to prevent a health care disaster from striking these families,” Corbett said.
Corbett said that under the terms of the settlement, TAD will pay $80,000 for consumer restitution, along with $20,000 for the cost of investigation and future consumer protection and consumer education purposes.Â
Additionally, Corbett noted that after reviewing this matter with the Attorney General’s Health Care Section and the Pennsylvania Insurance Department, Capitol Blue Cross has covered more than $568,000 in claims for TAD employee’s whose medical expenses were incurred between October 2008, when the PPO coverage was terminated, and March 2009, when employees were notified about the cancellation.
“We believe this restitution amount, combined with the claims that have already been covered, addresses the medical expenses that employees were unfairly left to face,” Corbett said.
Corbett explained that the restitution funds will be used to pay valid claims that have already been filed with the Attorney General’s Health Care Section, along with new claims received by December 17, 2010.
Consumers who have not yet contacted the Attorney General’s Office about this matter can submit online health care complaints at www.attorneygeneral.gov (Highlight the “Complaints” button in the main website menu and select “Health Care Complaints” from the list that appears) or call the Attorney General’s Health Care Hotline, at 1-877-888-4877.
In addition to the restitution payment, the settlement agreement also permanently prohibits TAD or any of the individual officers named in the lawsuit from engaging in any future activity that violates Pennsylvania’s Consumer Protection Law.
The consent judgment was filed in Dauphin County Court of Common Pleas by Deputy Attorney General Timothy E. Gates and Chief Deputy Attorney General Thomas M. Devlin, both from the Attorney General’s Health Care Section. The consent judgment was approved by the court on November 17, 2010.
HARRISBURG – The Attorney General’s Health Care Section has reached a $100,000 settlement resolving a civil lawsuit filed against a Texas-based aviation parts manufacturing business accused of failing to pay its portion of health care premiums for Harrisburg area employees while continuing to deduct employee contributions from paychecks – leaving former workers to face unexpected medical bills.
Attorney General Tom Corbett said the agreement, known as a consent judgment, was filed in Dauphin County Court of Common Pleas against Turbine Airfoil Designs (TAD), a Texas corporation, formerly operating at 1400 North Cameron St, Harrisburg.Â
The settlement also includes the following TAD corporate officers:
. Chief executive officer John A. Walton, of Dallas, Texas.
. President Benjamin C. Frazier, of Harrisburg.
. Chief financial officer Anne C. Richie, of Beachwood, Ohio.
“The goal of our lawsuit and the purpose of this settlement are to assist former TAD employees who were saddled with medical expenses that they believed were covered by their company health insurance plan,” Corbett said.
According to the lawsuit, TAD fell behind on premium payments to Capitol Blue Cross for employee health care coverage in August 2008, resulting in multiple delinquency notices that were not disclosed to employees. Additionally, a payment plan that was established between TAD and Capitol Blue Cross was not completed by the company, eventually resulting in the cancellation of all coverage.
Corbett said that employees were left particularly vulnerable because they allegedly did not receive notice until March 17, 2009 that their company health plan had been cancelled and that their PPO coverage had actually ceased nearly six months before, on October 9, 2008. Numerous TAD employees sought medical care during the period between October 2008 and March 2009, not knowing that payment of their claims had been suspended or that their PPO health care benefits had effectively stopped.
“Company officials allegedly knew, or should have known, that non-payment of health insurance premiums would leave workers vulnerable, but failed to warn their employees or take steps to prevent a health care disaster from striking these families,” Corbett said.
Corbett said that under the terms of the settlement, TAD will pay $80,000 for consumer restitution, along with $20,000 for the cost of investigation and future consumer protection and consumer education purposes.Â
Additionally, Corbett noted that after reviewing this matter with the Attorney General’s Health Care Section and the Pennsylvania Insurance Department, Capitol Blue Cross has covered more than $568,000 in claims for TAD employee’s whose medical expenses were incurred between October 2008, when the PPO coverage was terminated, and March 2009, when employees were notified about the cancellation.
“We believe this restitution amount, combined with the claims that have already been covered, addresses the medical expenses that employees were unfairly left to face,” Corbett said.
Corbett explained that the restitution funds will be used to pay valid claims that have already been filed with the Attorney General’s Health Care Section, along with new claims received by December 17, 2010.
Consumers who have not yet contacted the Attorney General’s Office about this matter can submit online health care complaints at www.attorneygeneral.gov (Highlight the “Complaints” button in the main website menu and select “Health Care Complaints” from the list that appears) or call the Attorney General’s Health Care Hotline, at 1-877-888-4877.
In addition to the restitution payment, the settlement agreement also permanently prohibits TAD or any of the individual officers named in the lawsuit from engaging in any future activity that violates Pennsylvania’s Consumer Protection Law.
The consent judgment was filed in Dauphin County Court of Common Pleas by Deputy Attorney General Timothy E. Gates and Chief Deputy Attorney General Thomas M. Devlin, both from the Attorney General’s Health Care Section. The consent judgment was approved by the court on November 17, 2010.
