Lexington Judge Says NO to UK HealthCare using the KY Dept. of Revenue as its Debt Collector

Since 2006, the UK HealthCare has been using the Kentucky Department of Revenue as its collection arm. This cozy relationship empowered UK HealthCare to garnish bank accounts, wages, and tax refunds without any judicial oversight. This essentially practice essentially strips the consumer of all due process rights. In addition to the recovery of debts, the Kentucky Department of Revenue tacked on a 25% collection fee. But no more, maybe.

Judge James Ishmael recently ruled that “UK is not eligible to use the revenue department as its collection agency.” Judge Ishmael’s decision turned on whether UK HealthCare was a state agency within the meaning of applicable state statutes.

This is good news, especially for poorer residents of the Commonwealth, who often depend on tax refunds and tax credits for basic needs.

UK HealthCare has not decided yet whether to file an appeal.