Federal Court Allows Payment of Outstanding Health Care Claims For Employees of Bankrupt Home Owners Bargain Outlet

CHICAGO, IL – The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, granted a motion allowing Morgan Administration Inc. and associated debtors doing business as Home Owners Bargain Outlet (HOBO), to engage Paradigm Health Plans, the approved third-party administrator, to reconcile and administer outstanding medical claims for employees participating in HOBO's health plan.

U.S. Department of Labor, Employee Benefits Security Administration (EBSA) investigators determined the Waukegan, Illinois-based HOBO failed to pay participant medical claims under the terms of HOBO's health plan. The Department filed a proof of claim in the company's bankruptcy proceedings on February 15, 2019, relating to the unpaid claims experienced by HOBO's health plan participants.

"The court's decision provides much needed relief for employees of the Home Owners Bargain Outlet, who may now have their medical claims resolved," said EBSA Regional Director Jeffrey Monhart, in Chicago. "The U.S. Department of Labor is committed to ensuring employees receive benefits they are entitled to under their plan provisions."

Former employees covered under the HOBO health plan should contact Paradigm for information on processing claims and for the deadline to submit claims for processing. Plan participants should contact Paradigm at Paradigm Health Plans, 2 International Dr., Suite 305, Portsmouth, NH 03801 or call (888) 422-8181.

Home Owners Bargain Outlet announced its bankruptcy in October 2018, and closed all seven of its stores, including five in the Chicago area and two in Wisconsin.

For more information about this case, contact EBSA at https://www.askebsa.dol.gov or (866) 444-3272.

Court Case No. 18-30039