Cigna settles allegations of overcharging for lab services for $300K

Cigna has received final approval from a federal court in Connecticut on a $300,000 class settlement with plaintiffs who alleged the company violated its fiduciary duties under ERISA by overcharging for laboratory services from certain providers.

The July 10 final agreement is expected to provide compensation to 5,000 people that were a part of the class action and resolves some claims made by class members under the original complaint filed in 2017.

Plaintiffs in the class action had alleged that Cigna improperly calculated and overcharged members for laboratory services from CareCentrix, eviCore, and Linkia. One plaintiff claimed she was billed more than $2,300 for a blood test from an in-network provider, which said it paid Cigna $500 for the test.

The same plaintiff alleged that Cigna's operations in Arizona or its affiliates, including Cigna Medical Group, overcharged for lab services provided through Health Diagnostic Services and LabCorp or Sonora Quest.

The final settlement includes $7,500 for the class representative and $110,000 for the plaintiff's attorneys.


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