Cigna has agreed to settle a “ghost network” class-action lawsuit for $5.7 million, according to October federal court filings in Illinois.
Plaintiffs Andrew and Andrea Hecht alleged that in 2021, they received bills from a hospital saying it was out of network with Cigna, despite the insurer indicating otherwise. After only paying what would have been the in-network balance, the hospital requested the remaining amount, ultimately harming the family’s credit. The Hechts claimed Cigna violated its fiduciary duty under the Employee Retirement Income Security Act.
The lawsuit covered anyone with a Cigna LocalPlus Plan who underwent a similar experience. As part of the settlement, Cigna will refrain from reprocessing claims and will correct the system error. Cigna will also pay up to $300,000 to the few settlement class members who received balance bills from providers, cover attorneys’ fees and offer incentive payments to the plaintiffs.
The settlement is awaiting preliminary approval.
