Neufeld 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, equipment, and supplies. 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, numerous patients have complained that they were overcharged for CPAP equipment and supplies by Cigna’s billing vendor CareCentrix. Plaintiffs allege that Defendants’ conduct violates the Employee Retirement Income Security Act of 1974 (ERISA) and the Racketeering Influenced and Corrupt Organizations Act (RICO).

Class: Certain participants in Cigna health plans who were overcharged for medical benefits (for example, CPAP machines, lab tests).

Status: The parties are currently engaged in discovery.