COBRA problem solved, Premier Resorts says

Andrew Kirk

Oct. 17, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- Apparently a 15-month-old can have bad credit.

That's what former Premier Resorts of Utah employee Scott Sandlin learned when he received a health-care bill that, he claims, should have been paid by Premier.

He was current on his premium payments to the company to benefit from the Consolidated Omnibus Budget Reconciliation Act (COBRA), but the company wasn't current with CNIC, the third-party administrator that processes claims, he said.

As a result, the health-care provider was seeking payment from him personally for about $1,200. He checked his credit report, and found that the debt had damaged his, his wife's, and surprisingly, his baby's credit reports.

At least two other former employees told The Park Record that they too received doctor's bills that should have been paid for through COBRA. One was hesitant to give his name because he thinks he's seen evidence of the problem being solved.

That's because the problem has been solved, said Bradley Goulding, co-owner of Premier Resorts International.

"We have processed every medical provider's claim that has been submitted to our offices as of last week. In fact, we received calls from employees who stated the medical provider's bill had not been paid, but our check had already cleared the bank. Apparently, there are some timing differences related to posting the payments to each account. Also, there are some medical providers that have not submitted bills for services previously provided many months

ago. However, once a bill is received, it is reviewed to see if it may be a duplicate claim that may have already been paid. Then the invoice is processed for payment. To date, all claims received as of last week have been processed for the various operations and payments sent," he said via email.

Josh Lair, said he believes that's true. He ran into Goulding earlier this week and was told the check was sent Tuesday. His health-care provider hadn't seen it as of Wednesday night, but that was too early to tell.

Still, it was disturbing to learn a month ago from the insurance administrator that it never received his payments even though he'd hand delivered checks for around $600 every month to Premier, he said.

He has four daughters he has taken to pediatricians in the last year, but the doctor's office told him they hadn't been paid since Feb. 1. The total bills were for around $1,300.

Lair said he's spoken with several people in the same situation.

"The problem is people say they're not sure what steps they're supposed to take in order to clear their names. Some people have been taken to collection for large bills out there," he said.

Lair said he believes he's figured out what to do and welcomes questions from people still confused.

"It was a headache for the last two months to figure out what happened; it was not a fun experience at all," he added.

Goulding said on a voice message to The Park Record that Premier has processed everything sent to them by medical providers that they've been able to research and deal with "here in Utah."

The Park Record has not been able to clarify if that also applies to terminated employees outside of Utah.

Stephen Fretz from the Vail, Colo. area, said his wife, a former Premier employee, got a bill for $10,000 for a visit to an Intensive Care Unit.

He said he's heard of several others in his area experiencing similar problems.

"It's just starting to snowball," he said Wednesday.

From what he and his attorney have learned, Fretz there was a gap of several months that she was not covered and no one notified her of it.

CNIC did not return a voice message left Thursday afternoon.

Fretz's attorney, Suzanne Hoffman-LeBlanc, said there's a bigger message tied into this situation: "People must be on guard and pay attention. They should at least once a month call and confirm coverage especially if using medical care and are with an employer experiencing trouble. You should make regular calls; don't take for granted that it will be there," she said.

The U.S. Department of Labor office in San Francisco encourages anyone experiencing trouble with their health plan, retirement or pension benefits to all 435-625-2481 or toll free at 1-877-872-5627. If people are not receiving owed overtime pay or paychecks, call 1-866-487-9243.

Update on the bigger picture

Danny Kelly, attorney for the trustee in Premier Resorts of Utah's bankruptcy, said Friday that it has filed a complaint with the U.S. Bankruptcy Court in Salt Lake City to collect the $21 million from Premier Resorts International The Park Record reported on in a Sept. 15 article.

Records show that over several years, $84 million went from the Utah company into a sweep account managed by the parent company (OOTC:KIDSQ) , but that only $63 million was returned to the Utah affiliate to cover overhead and operating costs.

In the Sept. 15 article, trustee Steven Bailey mentioned another amount, $10 million. Kelly said that number was computed differently and may be part of the $21 million. He said there will not be a second adversarial proceeding seeking that amount.

Brent Asay, wage claim unit manager for the Utah Labor Commission, said his office is still pursuing owed wages to terminated Premier Resorts of Utah employees, mostly accrued vacation pay that should have been paid at the time of their termination. He said the investigation is ongoing and hearings will be held in the future. As of right now, he said his office is planning to pursue the company principals, Goulding and co-owner Barbara Zimonja for the money.

Documents filed with the Summit County Recorder's Office reveal that several state agencies continue to have tax liens against the company.

There is also a Federal Tax Lien recorded against Premier for the tax period ending in September 2008, suggesting the company's financial troubles may have begun earlier than last winter.

The South Carolina Real Estate Commission confirmed that it has received two complaints about Premier in North Myrtle Beach, but said it cannot comment on the complaints.

Lesia Kudelka, assistant director of communications for the South Carolina Department of Labor, Licensing and Regulation, did say that law "requires property managers-in-charge to maintain all real estate rental monies (in) a trust account until the lease or rental transaction is terminated or expires, at which time the monies must be disbursed in accordance with the contract.

According to the Idaho Mountain Express newspaper, at least one Sun Valley condo owner is owed a rental revenue check from Premier.

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