Srednicki v. Cigna Health and Life Insurance Company

Plaintiffs are suing Cigna Health and Life Insurance Company, in the District of Connecticut, on behalf of a class of patients who received medical benefits pursuant to a Cigna plan, alleging that Cigna engaged in a fraudulent and deceptive scheme to artificially inflate the prices of medical services. Specifically, under the relevant health plans, the cost shares (copayments, coinsurance, and deductible payments) paid by patients should be based on the amount actually paid to the professional who provided the benefits (i.e., the provider). Cigna and its billing vendors are alleged to have secretly calculated cost shares using an inflated price causing patients to be overcharged. For example, plaintiffs’ and class members’ cost-share routinely was higher than the price the insurer agreed to pay the provider for providing the health services. Plaintiffs allege that Defendants’ conduct violates the Employee Retirement Income Security Act of 1974 (ERISA).

Class: Certain participants in Cigna health plans who were overcharged for medical services.

Status: The parties agreed to settle and the Settlement was granted at a Final Approval Hearing on July 10, 2023.