State: Minnesota AG sues Allina Health System for usurious interest on medical debts
Minnesota Attorney General Lori Swanson has announced that her office has filed a lawsuit against Allina Health System in Hennepin County District Court in Minnesota, alleging that the company violated state usury laws by charging rates of interest of up to 18% on medical debts owed by patients.

Minnesota's usury law imposes a cap of 8% interest on such debts. The complaint names as defendants both Allina Health System and its subsidiary, Accounts Receivable Services, LLC, a debt collection agency owned by Allina doing business under the name MedCredit Financial Services. The lawsuit seeks to enjoin Allina from violating these laws and to obtain refunds for patients who were charged usurious and unlawful rates of interest.
Swanson said in the press release that Allina allegedly typically presents patients with medical bills not covered by insurance three options to avoid being referred to a debt collection agency: (1) to pay the medical bill in full immediately; (2) to pay the medical bill in three equal monthly installments; or (3) to pay their bill through MedCredit which charges interest of 18% on debts up to $4,999 and 12% on debts from $5,000 up to $9,999. According to the release, the lawsuit alleges that, in some cases, Allina had failed to fully disclose the terms of MedCredit to patients, including the interest rates charged.

National: Rep. Velá[<00E1>][<00E1>][<00E1>]zquez to Reintroduce CHOICE Act
Representative Nydia Velá[<00E1>][<00E1>][<00E1>]zquez (D-N.Y) Chairwoman of the House Small Business Committee, has announced that she is reintroducing the CHOICE Act, a bipartisan bill that would allow businesses to obtain health care coverage for workers at negotiated bulk rates through purchasing pools. The announcement follows a hearing before the Committee, where according to a press release, witnesses stated that "small firms are not only struggling to continue providing coverage for their employees, but now find that the cost of coverage is making it even harder to create jobs in an already difficult economic climate."

"For small businesses already under great financial strain, the rising cost of health care simply adds more pressure," Rep. Velá[<00E1>][<00E1>][<00E1>]zquez (D-N.Y) was quoted on the Committee's web site. "We cannot expect our small businesses to play their traditional role as drivers of the economy and lead our nation's recovery when crushing health care costs prevent them from bringing on new employees."

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