Cigna Health Agrees to $2.91 Million Settlement Over Alleged Underpayment of COVID-19 Test Claims

Deadline
Deadline: April 29, 2025
Total Settlement Amount
Total amount allocated for all claims
Individual Payout Range
Estimated amount per eligible claim
Proof of Purchase
For class members who spent more than $500 on any COVID-19 test covered by the settlement, supporting documentation must include a receipt or similar document from the healthcare service provider or its billing handler and/or a record from a bank, credit or debit card, or other commonly used payment platform, which shows the relevant information. The information must not contradict the claims data on file provided by Cigna or the information provided in the claim form.
Settlement Summary
In a significant development, Cigna Health and Life Insurance Co. has agreed to a $2.91 million settlement to resolve allegations that it underpaid COVID-19 test claims. The class action lawsuit was filed by Cigna plan members who claimed the insurer failed to fully reimburse them for COVID-19 tests taken between March 27, 2020 and prior to September 1, 2023, leaving them to shoulder the difference. According to the lawsuit, Cigna's actions violated the Employee Retirement Income Security Act (ERISA), a federal law that regulates employee health insurance benefit plans. Eligible class members who felt shortchanged can now claim a proportional share of the settlement fund based on the amount they were underpaid for their tests.
Entities Involved
Eligibility Requirements
- Must have submitted a claim to Cigna for reimbursement from an ERISA healthcare benefits plan for a Covid-19 test obtained between March 27, 2020 and prior to September 1, 2023.
- The healthcare provider billed more than Cigna approved for payment.
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