Critics say UK abused power by having state collect debts. Judge orders it to stop.
A few years back, Sarah Moore got behind on some bills from University of Kentucky HealthCare because of a late reimbursement from Medicaid.
Eventually, UK referred the matter to the Kentucky Department of Revenue, and they began to take money out of Moore’s wages to the tune of $3,800. About 80 percent of that money went to UK to pay the debt — including interest —while the revenue department kept 20 percent as a “collection fee.”
Moore went to attorney Douglas Richards, who was shocked to hear that a local hospital used the state’s taxing authority to go after debts, instead of civil actions. He sued, and Fayette Circuit Court Judge James Ishmael agreed, ruling on Feb. 8 that UK is not eligible to use the revenue department as its collection agency.
UK officials said they have not decided if they will appeal the decision. They have 30 days from the date of the judge’s ruling.
Read more: http://www.kentucky.com/news/local/education/article200482274.html