November 19, 2018

Atrium Health is facing a class-action lawsuit alleging it falsely claimed to be a government entity to sidestep certain legal protections that affect employees' health and retirement plans.

Representatives from Cohen Milstein Sellers & Toll filed the lawsuit today in the U.S. District Court for the Middle District of North Carolina. The plaintiffs are former employees.

The lawsuit alleges that, because of Atrium's false claim, employees' retirement and health plans were put at risk and participants were forced to pay higher costs.

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The lawsuit also alleges that Atrium uses its 50% stake in its third-party plan provider for employees, MedCost Benefits Services LLC, to charge more without improving the quality of care. Doing that leaves Atrium with more profits, the plaintiffs say.

“Atrium Health has jeopardized the well-being of its employees and their families for far too long,” says attorney Karen Handorf, partner at Cohen Milstein Sellers & Toll. “Plainly and simply, Atrium Health is not nor ever has been a government entity. Atrium is a healthcare behemoth trying to get away with spending money to expand its operations rather than on its employees."

The complete article can be accessed here.