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Former Employees of Montana University To Receive Compensation Over Medical Insurance Claims

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Former employees who worked for Montana University are set to receive compensation due to a settlement the class of plaintiffs reached with the university. The plaintiffs alleged they were denied medical insurance claims due to a clause the university had in its contract that conflicted with Montana state law. Montana University operated their own health insurance program. Montana has a “made whole” statute that says the person injured has taken care of before the insurance companies hammer out which one is responsible for paying for the treatment. Montana University’s clause stated they were not responsible for paying if another insurance policy was available. As a result, many of the employees who found themselves paying out of pocket for treatment that should have been paid by the university. A group of former employees got together and filed a lawsuit against the university. A settlement was reached where the university will begin compensating the plaintiffs. The university also removed the clause prohibiting spending on their employees. Some news reports state compensation can run from a couple of hundred to $120,000 to some plaintiffs. In December, a hearing has been scheduled to follow up on the compensation proceedings. An estimated 45,000 people may be eligible for compensation.