Cigna COVID-19 Test Settlement: $2.91M

Cigna plan members and dependents who submitted a claim for reimbursement of a COVID-19 test during the class period under an ERISA-governed health plan and received partial reimbursement.

For claims over $500, documentation must include:

• Provider or billing service receipt

• Bank or card transaction showing payment

• Date and provider of service

• Amount billed and proof of payment

Cigna Health and Life Insurance Co. has agreed to a $2.91 million class action settlement to resolve allegations that it underpaid plan members for COVID-19 testing claims. According to the lawsuit, Cigna failed to reimburse members the full amount billed for COVID-19 diagnostic tests, instead covering only a portion and leaving members responsible for the remaining balance.

Plaintiffs claim this violates the Employee Retirement Income Security Act (ERISA), which regulates employer-sponsored health plans. They allege that Cigna should have fully covered the cost of these tests under federal pandemic relief guidelines but instead approved reduced reimbursements, shifting the burden to insured individuals.

Cigna denies all allegations but agreed to the settlement to avoid further litigation. The case covers COVID-19 tests submitted for reimbursement between March 27, 2020, and before September 1, 2023, under ERISA-governed plans.

Under the Terms of the Settlement

Eligible class members will receive a cash payment based on the amount they were underpaid. Those whose test reimbursements were $500 or less do not need to submit a claim form—payments will be calculated automatically based on existing Cigna records.

Class members who paid more than $500 for a test must submit a valid claim form along with supporting documentation to receive compensation. Payments will be distributed proportionally and are intended to address the difference between what was billed and what Cigna reimbursed.

This settlement seeks to compensate ERISA health plan participants for alleged violations of their reimbursement rights during the pandemic.