MN sues Allina Health System over medical debt interest

Minnesota's attorney general has sued Allina Health System, asserting that the system has been charging illegally high interest rates of as much as 18 percent on unpaid medical bills.

Allina's MedCredit subsidiary financed medical debts of up to $4,999 at 18 percent, and debts between $5,000 to $9,999 at 12 percent. According to Attorney General Lori Swanson, that's a no-no, as state usury laws cap interest rates on medical debt at 8 percent. Swanson also alleges that Allina didn't fully disclose the terms of MedCredit financing to patients.

Swanson's lawsuit seeks to stop Allina from its alleged violation of state usury laws, as well as to get refunds for patients who were charged the high interest rates.

To learn more about the lawsuit:
- read this Minneapolis Star-Tribune piece

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