Peoria, Ill.-based OSF HealthCare has agreed to pay $25 million to resolve a lawsuit alleging it skirted Employee Retirement Income Security Act requirements by claiming an exemption for "church plans," according to Law360.
A proposed class of current and former OSF HealthCare workers asked a federal judge in Illinois to sign off on the deal. Under the agreement, OSF would pay $1.75 million in attorney fees, expenses and incentive awards and $25 million toward funding its retirement plans through 2025, according to the report.
The lawsuit, filed in 2016, has been revised four times. It alleges OSF underfunded its retirement plans by hundreds of millions of dollars by overstating its connection to the church to qualify for ERISA's religious exemption.
More articles on legal and regulatory issues:
West Virginia hospital settles whistleblower suit for $50M
UnitedHealth accused of illegally deflating reimbursements
Florida physician pleads guilty to submitting $20M in fraudulent claims