Schmitt v. Kaiser Foundation Health Plan of Washington, et al.

If you received a notice, it is because you (or a member of your family) are or were an enrollee in a Kaiser health insurance plan that did not include coverage for hearing aids and associated services from October 30, 2014 to December 31, 2023. You are not a class member simply because you got a notice. If you are not in the class, you can disregard the notice.

Only people who meet the following definition are in the class:

All individuals who: (1) were insured at any time during the Settlement Class Period under a Washington health insurance plan that has been, is or will be delivered, issued for delivery, or renewed by Kaiser Foundation Health Plan of Washington and Kaiser Foundation Health Plan of Washington Options (collectively, “Kaiser”), excluding Medicare Advantage plans and plans governed by Federal Employee Health Benefit Act that did not cover Hearing Aids and Associated Services and (2) have required, require, or will require treatment for hearing loss other than treatment associated with cochlear implants or with Bone Anchored Hearing Aids (BAHAs).

The “Settlement Class Period” is defined as October 30, 2014, through December 31, 2023.

The Named Plaintiffs claim that Kaiser discriminated against them and other insureds with hearing loss by excluding coverage of hearing aids and associated services. They claimed that this exclusion violated state and federal health insurance anti-discrimination laws. They also alleged that Kaiser breached their health insurance contracts by creating and applying the exclusions. Kaiser denied all claims.

This lawsuit was filed as a class action because hundreds or thousands of Kaiser enrollees are in the same position as the Named Plaintiffs. The three Named Plaintiffs agreed to serve as Class Representatives on behalf of those persons.

The Final Approval Order was granted on April 18, 2024. The main points of the Agreement are described on this webpage. You can read the entire agreement on the Important Documents page.

$3,000,000 Settlement Fund

The agreement requires Kaiser to pay $3,000,000 into a settlement fund to reimburse valid and approved unpaid charges for hearing aids and associated services incurred by class members between October 30, 2014 and December 31, 2023, attorneys’ fees, litigation costs to class counsel, arbitration costs, taxes, claims administration and class notice costs, and case contribution awards to the Named Plaintiffs.

Attorneys’ Fees, Litigation Costs, and the Costs of Claims Administration

The Court approved an Award of Attorney Fees amounting up to 33.33% of the Settlement Fund. Litigation costs, arbitration costs, costs for claims administration, class notice costs incurred and any taxes due will be paid from the fund.

Case Contribution Awards

The Court ordered $15,000 for each Named Plaintiff as a case contribution award to be paid from the settlement fund. This award is to compensate Named Plaintiffs for the time, effort and risk they undertook to pursue the claims in this case.

Comment on, Support, or Object to the Settlement Agreement, Award of Attorneys’ Fees, Litigation Costs and Case Contribution Awards.

Any objections, comments, or requests were to be received by the Court no later than April 4, 2024.

The extended Claim Filing Deadline for this Settlement was May 4, 2024. Claims are no longer accepted.

Class counsel expects, but does not guarantee, that the $3,000,000 will be sufficient to pay all class members’ valid and approved claims at 100% after payment of attorneys’ fees, litigation costs, incentive awards, arbitration costs, taxes, and administration costs.

If insufficient funds remain to pay all class members who filed valid and approved claims at 100% after the payment of attorneys’ fees, litigation costs, incentive awards, arbitration costs, taxes, and administration costs, then all class members will receive a pro rata (percentage) distribution of their approved claimed amount.

If excess funds remain after all payments described in the Agreement are made, then those excess funds up to $300,000 shall be donated to the Washington State Communication Access Project, a nonprofit organization dedicated to enabling persons who are hard of hearing to fully enjoy public venues. Any remaining excess funds shall be donated to the Legal Foundation of Washington to distribute to charitable organizations dedicated to advocacy on behalf of people who are deaf or hard of hearing.

The Court approved the agreement after a fairness hearing. If any class member appeals that decision by the Court, a final decision on any appeal(s) must be made before these funds will be available.

Class members will release Kaiser from all claims related to the hearing aids and associated services that were or could have been brought in the lawsuit. This means that if you have any actual or potential claims arising out of Kaisers’ alleged failure to pay, those claims will be resolved as part of the agreement, and your right to payment for any damages related to hearing aid coverage will be governed exclusively by the agreement for the period between October 30, 2014, and December 31, 2023.

Objecting is telling the Court that you do not like something about the Settlement. You can object to the Settlement only if you do not exclude yourself. Excluding yourself from the Settlement is telling the Court that you do not want to be part of the Settlement. If you exclude yourself from the Settlement, then you cannot object to the Settlement because it no longer affects you.

Requests for exclusion were to be received by April 4, 2024. Requests for exclusion are no longer accepted.

The following is Class Counsel:

Rick Spoonemore
Ele Hamburger
Sirianni Youtz Spoonemore Hamburger
3101 Western Avenue
Suite 350
Seattle, WA 98121
https://www.symslaw.com/kaiserhearingaids
206-223-0303

Class Counsel will represent you and others in the Settlement Class. You will not be charged for this counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.

You were not required to take action. The Court approved the settlement and any claims you have against Kaiser regarding coverage for hearing aids and associated services that could have been brought in this lawsuit will be released.

The extended Claim Filing Deadline for this Settlement was May 4, 2024. Claims are no longer accepted.

If you submitted a claim on behalf of a minor that requires additional documentation, you will be contacted by the Settlement and Notice Processor at a later time.

For information about your rights related to the lawsuit, you may call 1-888-339-4196 (toll-free) or 1-877-921-3669 (TTY) or email info@KPHearingAidSettlement.com. You may also contact Class Counsel, Sirianni Youtz Spoonemore Hamburger, by visiting https://www.symslaw.com/kaiserhearingaids or calling at 206-223-0303.